Series 63: Exercise

Exercise

Answer true or false

1. 1. _ Broker-dealers are permitted to use customer testimonials in their advertisements.
2. 2. _ Investment adviser representatives can never use references or past recommendations as part of their advertising efforts.
3. 3. _ Graphs and charts are prohibited from advertisements for investment advisers and investment adviser representatives.
4. 4. _ Third-party links provided on a broker-dealer firm’s website are always subject to FINRA guidelines.
5. 5. _ Broker-dealers operating within a bank setting should always offer their services in an area distinct from where regular banking activity takes place.
6. 6. _ As long as an agent selling shares of a mutual fund delivers a final prospectus before a given sales date, full disclosure has been provided.

Answers

1. 1. True. Broker-dealers may use customer testimonials; investment advisers may only use third-party testimonials in specific instances. .
2. 2. False. An investment adviser representative can use references and past recommendations as long as she provides a list of all recommendations she has made for at least the past