Final answer:
True. The SEC indeed requires advisers to disclose compensation specifics for wrap fee programs. This transparency aims to inform clients about potential conflicts of interest and allow them to make knowledgeable decisions.
Step-by-step explanation:
The statement that the SEC rules require an adviser who receives compensation based on a client's participation in a recommended wrap fee program to disclose to the client the specific dollar amount of compensation paid to the person making the recommendation is true.
Under the Investment Advisers Act of 1940 and the rules promulgated by the SEC, advisers are required to be transparent with their clients, especially regarding fees and compensation that could affect their advice. Such disclosure is crucial to ensure that clients can make informed decisions and are aware of any potential conflicts of interest their adviser may have.