Trading, Accounts & Prohibited ActsQuestion 298 of 398
A representative wants to include the phrase 'this fund is guaranteed to double your money in one year' in a brochure sent to retail clients. Under FINRA communication standards, this is:
a.Acceptable if a principal approves it
b.Prohibited, because communications must be fair and balanced and may not be false, exaggerated, or promise specific results
c.Acceptable if printed in small font
d.Required disclosure language
Explanation
FINRA communication rules require content that is fair, balanced, and not misleading. Promising guaranteed or specific investment results, or making exaggerated or unwarranted claims, is prohibited regardless of principal approval.
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