Series 7 practice questioneasyCommunications with the Public (Retail and Institutional) — Testimonial Disclosure
When a broker-dealer uses a testimonial in advertising, what must be disclosed according to FINRA rules?
- AThe total compensation paid to the testimonial provider only if over $100
- BThe number of years the testimonial provider has been a client
- CThe name and address of the person giving the testimonial
- DThat the testimonial may not be representative of the experience of other clients✓ Correct answer
Explanation
Why D — That the testimonial may not be representative of the experience of other clients
FINRA requires that advertisements using testimonials disclose that the experience described may not be representative of the experience of other clients and that past performance does not guarantee future results.
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