RCA – March 1997 – Ask The Analyst – Broker/Dealer Names

Q: Is letterhead used for correspondence considered advertising or sales literature?


A: The NASD Conduct Rules apply the same standards for use and disclosure of member names to letterhead as to advertising and sales literature, regardless of how the letterhead may be used. The specific standard, Conduct Rule 2210(f) requires, among other things, that the NASD member name be clearly and prominently disclosed and that no confusion be created as to who offers securities when a member and a non-member entity are named in the same communication.