Series 7 practice questionmediumSeminars and Public Appearances — Use of Testimonials
During a public seminar, a registered representative introduces a client who gives a testimonial about their investment returns. Which of the following must the representative ensure to comply with FINRA rules?
- ADisclose that past performance does not guarantee future results.✓ Correct answer
- BProvide written performance records to attendees.
- CObtain FINRA approval for the testimonial in advance.
- DHave a principal present at the seminar.
Explanation
Why A — Disclose that past performance does not guarantee future results.
FINRA requires that when testimonials are used, there must be a clear and prominent disclosure that past performance does not guarantee future results.
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