Series 7 practice questionmediumSeminars and Public Appearances — Use of Research Reports
A representative plans to distribute a research report from her firm's research department at a seminar. What is required before distribution?
- ANo additional review, since it is a firm-produced report.
- BDisclosure of any conflicts of interest related to the report.✓ Correct answer
- CPrincipal approval of the report for seminar use.
- DFINRA pre-approval of the research report.
Explanation
Why B — Disclosure of any conflicts of interest related to the report.
When distributing research reports, representatives must disclose conflicts of interest, such as if the firm makes a market in the securities discussed.
Turn it into reps
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