FINRA Requires More Marketing Materials to be Filed
FINRA has notified member firms that certain marketing materials known as “free writing prospectuses” are no longer exempt from FINRA content, supervision, and filing rules. “Free writing prospectuses” are broadly defined to mean materials relating to publicly-offered securities which contain information not necessarily contained in a prospectus. If such materials are distributed by a broker-dealer “in a manner reasonably designed to lead to their broad unrestricted dissemination” (i.e. distribution other than restricted access or dissemination to current customers), the member firm must comply with the content, supervisory review, and filing requirements in Rules 2210 and 2211. “Free writing prospectuses” are not permitted for registered funds, which must comply with Rule 482.
OUR TAKE: This change in policy sweeps a huge class of marketing materials under FINRA supervision. The biggest compliance challenge is the filing requirement where FINRA examiners may provide comments. FINRA is again expanding its regulatory reach. In the event that FINRA becomes the regulator of choice for RIAs, expect that FINRA will require the filing and review of all RIA marketing materials.
Posted by Todd Cipperman at 10/29/2010 5:22 AM 
Categories: Distribution and Broker-Dealers
Tags: free-writing prospectus filing marketing materials finra
Categories: Distribution and Broker-Dealers
Tags: free-writing prospectus filing marketing materials finra
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