AI Marketing Compliance Review for Advisors Quiz

Answers and explanations appear as you take the quiz.

1. On what date did compliance with the SEC Marketing Rule become mandatory for investment advisers?
   • December 22, 2020
   • January 1, 2022
   • November 4, 2022
   • June 30, 2023
2. Under the Marketing Rule, what must appear with any gross performance figure in an advertisement?
   • Net-of-fee performance
   • A benchmark index return
   • The adviser's assets under management
   • A client testimonial
3. For portfolios other than private funds, which time periods must advertised performance cover?
   • Year-to-date and 3 years
   • 1, 5 and 10 years
   • Only since inception
   • The best and worst calendar years
4. What must an adviser have before presenting hypothetical performance?
   • A third-party audit of every hypothetical figure
   • Written consent from each client who sees it
   • A statement that hypothetical results are guaranteed
   • Policies reasonably designed to ensure it is relevant to the intended audience's situation and objectives
5. Why does the guide recommend tuning an AI review tool for recall rather than precision?
   • High-recall models are cheaper to run
   • Regulators require a set false-positive rate
   • A missed violation costs much more than a few extra minutes of human review
   • Precision cannot be measured for text
6. According to the guide, if an AI tool clears a social post and the post later breaks the Marketing Rule, who is responsible?
   • The adviser and its compliance function
   • The AI vendor
   • The social media platform
   • No one, if the tool was validated
7. What were the March 2024 SEC settlements with Delphia and Global Predictions about?
   • Failing to disclose paid testimonials
   • Misleading statements about how the advisers used AI
   • Showing gross performance without net performance
   • Missing records of social media posts
8. Which rule generally requires advisers to keep advertisements and supporting records, typically for five years?
   • FINRA Rule 2210
   • Rule 206(4)-7
   • Regulation Best Interest
   • Rule 204-2