Presentations Regulatory Frameworks & Compliance 4 — Questions and Answers
Question 1: A presenter at a trade conference shares a competitor's internal pricing strategy obtained from a former employee. This most likely violates:
- FTC Endorsement Guides
- The Defend Trade Secrets Act (DTSA) (Correct answer)
- FINRA suitability rules
- The Computer Fraud and Abuse Act only
Correct answer: The Defend Trade Secrets Act (DTSA)
Sharing a competitor's internal pricing data obtained from an insider constitutes trade secret misappropriation under the Defend Trade Secrets Act.
Question 2: Under WCAG 2.1 accessibility guidelines, which color contrast ratio is the minimum required for normal body text in a compliant presentation?
- 2:1
- 3:1
- 4.5:1 (Correct answer)
- 7:1
Correct answer: 4.5:1
WCAG 2.1 Level AA requires a minimum contrast ratio of 4.5:1 for normal-sized text to ensure readability for users with visual impairments.
Question 3: A publicly traded company's IR team presents non-public earnings information to a select group of analysts. This most directly violates:
- SOX Section 906
- SEC Regulation Fair Disclosure (Reg FD) (Correct answer)
- GAAP revenue recognition standards
- FINRA Rule 2010
Correct answer: SEC Regulation Fair Disclosure (Reg FD)
SEC Regulation FD prohibits selective disclosure of material non-public information to certain investors without simultaneous public disclosure.
Question 4: An HR manager's presentation on employee performance metrics must comply with which primary data protection requirement when shown to department heads?
- HIPAA minimum necessary rule for all employee data
- Need-to-know and least-privilege access principles under employment law and company policy (Correct answer)
- GDPR data portability rights
- FCRA adverse action notice requirements
Correct answer: Need-to-know and least-privilege access principles under employment law and company policy
Employee performance data must be shared on a need-to-know basis, limiting access to those with a legitimate business purpose as required by employment law and privacy best practices.
Question 5: A nonprofit organization's fundraising presentation that includes testimonials from beneficiaries must comply with which FTC requirement?
- All testimonials must represent typical results, or a clear disclaimer must be included (Correct answer)
- Testimonials must be notarized by a licensed attorney
- Only testimonials from donors over age 65 require disclosure
- Nonprofits are fully exempt from FTC endorsement guidelines
Correct answer: All testimonials must represent typical results, or a clear disclaimer must be included
FTC endorsement guidelines require that testimonials reflect typical results or include a clear and conspicuous disclaimer about atypical outcomes, even for nonprofits.
Question 6: Which record retention requirement most directly applies to a broker-dealer's client presentation materials under FINRA rules?
- Presentations must be retained for 3 years, the first 2 in an easily accessible place (Correct answer)
- Presentations are exempt from retention if delivered verbally
- Retention is only required for materials exceeding $10,000 in value
- FINRA requires 10-year retention for all presentation materials without exception
Correct answer: Presentations must be retained for 3 years, the first 2 in an easily accessible place
FINRA Rule 4511 and SEC Rule 17a-4 require broker-dealers to retain communications including presentation materials for at least 3 years, with the first 2 years in an accessible location.
Question 7: A speaker presents research funded by a pharmaceutical company at a medical conference without disclosing the funding. This violates which compliance standard?
- ACCME (Accreditation Council for CME) Standards for Integrity and Independence (Correct answer)
- OSHA Hazard Communication Standard
- Joint Commission accreditation requirements
- CMS Conditions of Participation
Correct answer: ACCME (Accreditation Council for CME) Standards for Integrity and Independence
ACCME standards require all CME presenters to disclose financial relationships with commercial interests to ensure the educational content is free from commercial bias.
Presentations Regulatory Frameworks & Compliance 4
A presenter at a trade conference shares a competitor's internal pricing strategy obtained from a former employee.
This most likely violates: