Series 7 practice questionmediumDigital Communications — Advertising Rules
A broker-dealer wants to launch a digital ad campaign targeting retail investors on a popular investment blog. What must the firm ensure for compliance?
- AOnly ads exceeding 140 characters require principal approval.
- BDigital ads do not require any supervisory review.
- CAds posted on third-party sites are not subject to firm advertising rules.
- DAll ads must be pre-approved by a principal and archived for recordkeeping.✓ Correct answer
Explanation
Why D — All ads must be pre-approved by a principal and archived for recordkeeping.
Digital advertisements targeting retail investors are considered retail communications and require principal approval and proper recordkeeping.
Turn it into reps
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