RCA – September 1997 – Ask The Analyst – Electronic Communications/Approval And Recordkeeping

Q: Our brokerage firm is affiliated with a non-NASD member company that wants to advertise brokerage services or securities products offered through our firm on its Internet site. Should we monitor electronic communications prepared by an affiliated non-NASD member company about the broker/dealer services that we provide or the securities products that we offer?


A: Yes. Advertising (or sales literature) about your firm's brokerage services or securities products, whether electronic or through other media, should not be used without your firm's knowledge and approval. You should take reasonable steps designed to ensure that affiliated non-member companies, such as a bank or insurance company, receive your firm's approval before advertising the brokerage services or securities products offered by your firm.