Under HKSI standards, an advertisement must be...

Under HKSI standards, an advertisement must be...

• A. Only use testimonials from satisfied clients
• B. Promotional materials describing products or services that are accurate, not misleading, and include risk disclosures
• C. Guarantee investment returns
• D. Exclude any risk information

Answer: (B)

Advertising under HKSI standards must present products or services honestly, clearly, and with risk disclosure to ensure investors understand potential downsides. This means the materials should be accurate, not misleading, and include information about the risks involved, so clients can make informed decisions and assess suitability. Relying solely on testimonials can mislead if not balanced with a full risk picture, and promising guaranteed returns ignores the inherent uncertainty of investments. Omitting risk information is also not allowed, as it deprives investors of essential context. Describing promotional materials as accurate, not misleading, and including risk disclosures best reflects what HKSI requires for advertising.

Advertising under HKSI standards must present products or services honestly, clearly, and with risk disclosure to ensure investors understand potential downsides. This means the materials should be accurate, not misleading, and include information about the risks involved, so clients can make informed decisions and assess suitability.

Relying solely on testimonials can mislead if not balanced with a full risk picture, and promising guaranteed returns ignores the inherent uncertainty of investments. Omitting risk information is also not allowed, as it deprives investors of essential context.

Describing promotional materials as accurate, not misleading, and including risk disclosures best reflects what HKSI requires for advertising.