RCA - Fall 1999 - Ask the Analyst - Filing Requirements and Electronic Communications

Q. Our Web site simply describes our firm, the securities we offer, and the qualifications of our principals. Do we have to file the site with the Department for review?


A. The filing requirements for this type of Web site are identical to those for any other advertisement as defined in NASD Conduct Rule 2210(a)(1). If the NASD member firm has never filed with the Department, it must file the Web site 10 days prior to first use and must continue to pre-use file all advertisements for a period of one year. The year starts on the date the firm's first filing is received by the Department. If the firm has already completed this one-year filing requirement, the products discussed in the Web site will dictate whether all or part of the site must be filed. If the Web site discusses options, collateralized mortgage obligations, or an investment company performance ranking for which the firm has created a customized subcategory, the firm must file the relevant portions of the site 10 days prior to first use. In addition, if the Web site discusses mutual funds, unit investment trusts, variable insurance products, government securities, or direct participation programs, the firm must file the relevant portions within 10 days of first use. See NASD Conduct Rules 2210(c) and 2220(c) for all of the filing requirements and possible exemptions.