RCA - September 1998 - Ask the Analyst - Internal-Use-/BD-Use-Only Material

Q. Is there a regulatory difference between delivering "internal use only" communications to registered investment advisers versus personnel registered with an NASD member firm?


A. The only regulatory difference pertains to the filing requirements set forth in NASD Conduct Rule 2210(c). This Rule requires members to submit certain advertisements and sales literature to the Department within specified time frames. Communications sent to individuals who are registered as investment advisers with the SEC, but who are not registered with NASD member firms, are subject to these filings requirements. However, the Rule exempts from filing communications sent to branch offices, or other internal material that is not distributed to the public. The content standards set forth in Rule 2210 apply to both types of communications.