Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

For how long must mutual fund advertisements be kept on file?

1. One year

2. Two years

3. No specific time required

4. Indefinitely

The correct answer is: No specific time required

Mutual fund advertisements must be retained for a minimum period of time, which is typically set by regulatory requirements. In this case, no specific time required would imply that there is no mandated duration for file retention. However, the Investment Company Act of 1940, along with FINRA guidelines, actually requires that mutual fund advertisements be kept for a period of at least two years from the date of the advertisement. This retention period is essential for compliance purposes, allowing regulators and other relevant parties to review marketing practices and ensure that funds are adhering to fair advertising standards. Therefore, despite the claim of no specific time required, the actual expectation is more aligned with a minimum two-year retention period to ensure accountability within the mutual fund industry.