SIE Exam Question 82: Answer and Explanation

Question: 82

When using testimonials, which of the following points does not need to be clearly stated in the body copy of the material?

• A. The testimonial may not be representative of the experience of other clients.
• B. The fact that that it is a paid testimonial if a nominal sum is paid.
• C. If the testimonial concerns a technical aspect of investing, the person making the testimonial must have adequate knowledge and experience to form a valid opinion.
• D. The testimonial cannot be indicative of future performance or success.

Correct Answer: B

Explanation:

If only a nominal sum is paid, the body copy of the material does not need to clearly state that it is a paid testimonial. If more than a nominal sum is paid, however, the fact that it is a paid testimonial must be indicated.