Series 79 practice questionmediumFairness Opinions
When issuing a fairness opinion, which of the following best illustrates a limitation that must be disclosed to the board?
- AThe opinion is based on public market data only
- BThe fees for the opinion are paid regardless of deal closing
- CBank is relying on company-supplied information and has not independently verified all data✓ Correct answer
- DThe opinion is preliminary and not final
Explanation
Why C — Bank is relying on company-supplied information and has not independently verified all data
Disclosing reliance on company-supplied data is critical for transparency about limitations. The trap is thinking payment terms or data sources are the main required disclosures.
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