Final answer:
It is true that clients must be provided with a product disclosure statement before investing in a financial product, as required by regulatory bodies to ensure transparency and protect investors.
Step-by-step explanation:
The statement that a product disclosure statement must be provided to all clients prior to making an investment decision to purchase a financial product is true. Regulatory frameworks such as the Federal Securities Act and agencies like the Securities and Exchange Commission (SEC) mandate the disclosure of relevant information to investors to ensure transparency and informed decision-making. These measures are in place to protect consumers from fraud and misleading information, emphasizing that inaccurate claims about a financial product's performance are not permitted. While businesses have certain freedoms in advertising, such as the use of exaggerated or ambiguous language, they must not provide false information. Importantly, in the context of investments, the principle of Caveat emptor ('let the buyer beware') must be balanced with the legal requirements for disclosure to prevent the exploitation of informational asymmetries between firms and investors.