Verification-agency ratings and rankings in advertisements require explanation, investor caution, and comparable studies across relevant market participants. Regulation 16N permits advertising use only of ratings or rankings assigned by a Past Risk and Return Verification Agency. Advertisements must explain the ... Summary
Verification-agency ratings and rankings in advertisements require explanation, investor caution, and comparable studies across relevant market participants.
Regulation 16N permits advertising use only of ratings or rankings assigned by a Past Risk and Return Verification Agency. Advertisements must explain the ratings or rankings directly or provide website details enabling access to their meaning and methodology, and must state that they are only one factor in choosing a regulated entity's services. The ratings or rankings must originate from a study or survey covering all relevant market participants in the relevant category to ensure comparability and objectivity.
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