Under the Consumer Protection Code, the advertisements can show simulated performance that is relevant to the performance of the bond. Which of the following is true?

• A. Show simulated performance that is relevant to the performance of the bond.
• B. Show simulated performance only on a past period not exceeding three years.
• C. Only refer to simulated performance in a footnote of smaller size than the rest of the advertisement.
• D. Not refer to simulated performance in any way.

Answer: (A)

Simulated performance may be shown in bond advertisements as long as it is relevant to how the bond could perform and is clearly labeled as simulated. This helps investors understand potential outcomes without promising actual results. The key point is relevance to the bond’s features and transparency that the data are illustrative, not guaranteed.

The other options introduce requirements that aren’t the main rule here: there isn’t a blanket three-year limit for simulated periods, nor is it restricted to footnotes alone, and it isn’t forbidden to reference simulated performance at all.