BE CAREFUL ON SERIES 6 EXAM ABOUT RULES FOR USING INVESTMENT COMPANY PERFORMANCE RANKINGS
Plan on taking the Series 6 Exam? Yes? Then be prepared for questions about requirements for advertising rankings of investment companies or mutual funds. Why do I say this? Answer—because FINRA's Content Outline for the Series 6 Exam includes Section 1.1 that requires knowledge of "product specific advertisements and disclosures on investment company products and variable contracts." FINRA Rule 2212 defines a "Ranking Company" as an entity not controlled by or affiliated with but independent of an investment company, and whose rankings are not ordered or paid for by the investment company. Or in other words, the Ranking Company has no ties to the investment company in any way. Therefore, the general rule is that a registered rep may not use or send out rankings of an investment company that are self-created or created by the investment company itself. Bob Eder in his Study for the Series 6 Exam talks about Investment Company Performance Rankings in his Chapt