Series 7 practice questioneasySeminars and Public Appearances — Use of Testimonials
Under FINRA rules, which of the following is TRUE regarding the use of client testimonials during a seminar?
- ATestimonials can only be used in written advertisements
- BTestimonials may be used if they are not misleading and disclose if compensation was provided✓ Correct answer
- CTestimonials can be used if they are paid
- DTestimonials are never permitted at seminars
Explanation
Why B — Testimonials may be used if they are not misleading and disclose if compensation was provided
FINRA allows the use of testimonials if they are not misleading and it is disclosed when compensation is provided for the testimonial.
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