Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

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Prepare for the Investment Company and Variable Contracts Products Principals Exam. Utilize flashcards and multiple-choice questions with detailed explanations. Excel in your Series 26 Exam!

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What must all sales literature that includes performance data for an investment company identify?

A reference to the fund manager
A risk assessment of the fund
A website or phone number for current performance data
A comparison with industry benchmarks

The correct answer is: A website or phone number for current performance data

When sales literature for an investment company includes performance data, it is essential to provide a website or phone number where potential investors can obtain current performance data. This requirement is in place to ensure transparency and allows investors to verify and access the most up-to-date information regarding the fund's performance. This practice withstands the test of time by promoting informed decision-making and responsible investing. Providing a reference to the fund manager, a risk assessment of the fund, or a comparison with industry benchmarks, while valuable information, does not meet the specific regulatory requirement focused on accessibility to current performance information. Therefore, having a readily available means for potential investors to access updated performance details is crucial and is considered a best practice in the investment industry.