A financial services provider is advertising an investment product which can fluctuate in value and does not guarantee a return of capital. Under the Consumer Protection Code which one of these warning statements must be included in the advertisement?

• A. If you invest in this product, you may lose some of the money you invest.
• B. The value of your investment will fluctuate.
• C. The value of your investment may go down as well as up.
• D. The value of your investment may go up as well as down.

Answer: (C)

The main idea being tested is how advertisements for investments with capital at risk must warn consumers about potential losses. The best phrasing is the explicit reminder that the investment’s value may go down as well as up. This directly communicates capital risk and the absence of a guaranteed return, which is exactly what the Consumer Protection Code requires in ads for products that can fluctuate in value.

Saying the value may go down as well as up is precise and standard: it tells the reader that losses are possible while still acknowledging there can be gains. Other statements either imply losses in a more absolute way, or use wording that doesn’t clearly emphasize the downside risk or the lack of a capital guarantee, making the chosen option the clearest and most aligned with the required disclosure.