SIE Exam Question 763: Answer and Explanation

Question: 763

All but which of the following are correct regarding advertising activities engaged in by a Registered Investment Advisor?

• A. Securities laws and rules prohibit performance advertising.
• B. Advertisements may not use or refer to testimonials.
• C. A testimonial refers to any statement of a client's experience or endorsement.
• D. All of the above are correct.

Correct Answer: A

Explanation:

Advertisements by a Registered Investment Advisor may not use or refer to testimonials, which refers to any statement of a client's experience or endorsement. Securities laws and rules do not prohibit performance advertising.