Investment Analysis Tools

What this video covers

• Why the investment analysis tool rule is an exception, not the general rule, and how broker-dealers are otherwise prohibited from showing hypothetical projections
• What qualifies as an investment analysis tool: interactive technology that produces simulations and statistical analyses on a one-on-one basis with individualized results
• Why static PDFs, email attachments, marketing brochures, and pre-made presentations fail the interactive requirement even if the underlying math is sophisticated
• The exact required disclaimer language, specifically the phrases "hypothetical in nature" and "not guarantees of future results," and why omitting these fails the rule
• What "clear and prominent" actually measures: accessibility and readability next to the output, not larger or bolder type, and why auto-dismissing pop-ups or buried disclaimers are non-compliant
• The full set of methodology disclosures required, including limitations, assumptions, results variation, investment universe, and potential favoritism toward certain securities
• Why disclosures must be in written narrative form rather than charts or graphics alone, and how electronic text satisfies this standard