Sales material gets limited-approval exception
Under a Finra rule change that took effect last week, principal approval is no longer required for certain sales material.
Under a Finra rule change that took effect last week, principal approval is no longer required for certain sales material. The SEC has approved an exception to the rule governing communication with the public that aims to help firms avoid compliance redundancy. The exception applies only when a firm uses another firm’s sales material that already has been approved by Finra. The rule changes also codify the Finra staff’s interpretation that a firm must maintain records of advertisements, sales literature and independently prepared reprints for three years after the day they were last used. For more details, visit finra.org/web/groups/rules_regs/documents/notice_to_members/p038186.pdf.
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