Under the Consumer Protection Code, which statement must ABC state in an advertisement for a Tracker Bond maturing in seven years?

• A. That the maturity value of the product cannot be calculated until the maturity date is reached.
• B. The return the Bond would have provided for an investment made seven years prior.
• C. Unit values are not guaranteed.
• D. A simulation of future returns.

Answer: (A)

Tracker bonds pay based on the performance of a reference index, so the amount you receive at maturity isn’t fixed in advance. The Consumer Protection Code requires the advertisement to state clearly that the maturity value cannot be calculated until the maturity date is reached. This disclosure helps investors understand that the final payoff depends on market performance and is not guaranteed ahead of time. Other potential statements—like past returns, simulations of future returns, or non-guaranteed values—do not address this essential point about the (non-)determinable maturity value.