Rule 206(4)-1 of the Investment Advisers Act of 1940 regulates advertising by investment advisers. It would be prohibited under that rule for any adviser:
I. to place an advertisement in a newspaper with photos of clients accompanied by statements claiming the adviser helped them meet their financial goals.
II.to advertise past, specific investment recommendations that were or would have been profitable, unless the advertisement fully disclosed all recommendations for at least the past year (including the security recommended, the date, price, and nature of the recommendation—buy, sell, or hold—the price triggering the recommendation, and the most recent price) and included a mandated cautionary legend that past performance is no assurance of future results.
III. to advertise any graph, chart, formula, or other device that consumers can use to determine when to make investment decisions while prominently disclosing the device's limitations and difficulties in its use.
IV. to offer a free subscription to the adviser's quarterly market review once the subscriber has completed a detailed financial profile.
A) I and IV.
B) III and IV.
C) I and II.
D) II and III.
Answer: A) I and IV.