Series 7 practice questionmediumCommunications with the Public (Retail and Institutional) — Testimonials
When using a testimonial in retail communications, what additional disclosure is required under FINRA rules if the client was compensated?
- AA list of all investments the client owns
- BNo disclosure is required
- CThe client’s address and phone number
- DThe amount and nature of the compensation✓ Correct answer
Explanation
Why D — The amount and nature of the compensation
If a testimonial is used and the client was compensated, both the fact and the amount/nature of the compensation must be disclosed.
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