I am in the middle of taking a quiz and ran into this question. My inquiry is related to the 1st protocol (“Recommendations made less than 1 year ago can’t be disclosed”). I did get the answer correct but, according to the explanation section, I believe there’s a discrepancy here where it states here that “Recommendations must be at least 1 year old” detailing that IA and IARs “may disclose past recommendations.”
So – my main question is should IA/IARs disclose or should not disclose past recommendations?
Hi @Joanne_Rohan. Investment advisers (IAs) and investment adviser representatives (IARs) can disclose past recommendations, but only if those recommendations are at least one year old.
So, the main rule is that they should not disclose recommendations that are less than one year old. The explanation emphasizes that they are allowed to reveal older recommendations. Still, they must follow strict protocols, like ensuring all recommendations over the past year are included and adding a disclaimer that past results don’t guarantee future performance.
In short: They can disclose past recommendations, but only if they meet the one-year mark and the other conditions. I hope that clears things up!
Also, there is a mail icon on each page of the course. Please use that in the future to send the quiz and your specific question directly to us!
Thanks for the heads-up on the mail icon function – will use that for inquiries moving forward! Re: past recommendations – got it and i’m all cleared up! So IA/IARs can disclose past recommendations AT LEAST or AT 1 year and NOT LESS THAN 1 year. Let me know if i’m correct and thank you!
Yes, that’s accurate. The general concept is that they can’t selectively advertise recent hyped-up investments, as it could be misleading/damaging to their potential clients.
