RCA – June 1998 – Ask the Analyst - Approval And Recordkeeping – Branch Manager

Q: Can a branch office manager with a Series 8 registration approve communications with the public?


A: The Series 8 registration qualifies an individual to approve all sales literature as defined in Rule 2210(a), but not advertisements. A Series 24 registered principal can approve all general securities advertisements and sales literature while a Series 26 registered principal can approve investment company and variable product advertisements and sates literature only.


Q: Must a form letter that goes to 10 people or less be approved by a registered principal?


A: A letter that is sent to more than one person is considered a form letter. Form letters meet the definition of sales literature set forth in NASD Conduct Rule 2210(a)(2) and, therefore, must be approved prior to use and in writing by a registered principal.