Test your industry knowledge by answering Quest CE’s exam question of the week! Exam questions are drawn directly from Quest CE’s exam portal, and feature a wide range of topics including suitability, ethics, regulation and anti-money laundering. Be sure to submit your answer in the comments section and check back Thursday for the correct answer.
Course Topic: Communications With the Public
Question: Alicia, a registered representative, includes a customer testimonial in a retail communication about a mutual fund. The person giving the testimonial was unpaid and the advertisement does not involve technical aspects of investing. It also includes a disclaimer that the testimonial may not be representative of the experience of others and is not a guarantee of future performance. Does this comply with FINRA content standards?
a.) Yes – because the content standards do not apply to testimonials.
b.) Yes – because it was unpaid, not technical, and includes a disclaimer.
c.) No – because the disclaimer does not include all of the information required by the rules.
d.) No – because all testimonials must disclose whether they are paid or unpaid.