Performance Guarantees Prohibition

What this video covers

• Why the North American Securities Administrators Association (NASAA) prohibits agents and broker-dealers from guaranteeing a customer against loss, promising a specific rate of return, or representing that gains are certain
• How sharing in a customer's losses to cushion a bad investment is legally treated as a prohibited guarantee even when the word "guarantee" is never used
• Why the prohibition applies equally to oral statements, written contracts, emails, texts, and casual conversations with no medium-based loophole
• The critical distinction between an issuer's contractual obligation (permissible fact) and an agent's personal promise (prohibited guarantee)
• How to spot exam questions that bait you by describing a bond coupon or treasury backing as if it were a violation
• Why the source of the claim, not the wording alone, determines whether a statement crosses into prohibited territory