Series 7 practice questionmediumMarketing and Prospecting — Sharing Performance Data
A representative wants to use past performance data in a marketing email. Which is required for compliance?
- AThe data must show the best possible returns.
- BOnly hypothetical returns may be shown.
- CThe data must cover at least 1, 5, and 10-year periods (if available) and disclose that past performance does not guarantee future results.✓ Correct answer
- DNo time period is required if the data is accurate.
Explanation
Why C — The data must cover at least 1, 5, and 10-year periods (if available) and disclose that past performance does not guarantee future results.
Performance data must present standardized periods and include a disclaimer that past performance is not indicative of future results.
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