Targeted Examination Request

January 2009

 

Re: Spot-check of Hedge Fund Advertisements and Sales Literature

 

NASD Rule 2210(c)(7) states that each FINRA firm's advertisements and sales literature are subject to a periodic spot-check procedure. Pursuant to this procedure and in accordance with FINRA Procedural Rule 8210, the Advertising Regulation Department requests that you provide the following:

 

  1. All advertisements and sales literature as defined in NASD Rule 2210(a), used from January 1, 2008 through December 31, 2008, for the purpose of promoting hedge funds or funds of hedge funds. This request is for general marketing material as well as material on behalf of specific hedge funds, including funds of hedge funds. Please note that this request excludes material that may have already been filed with the Advertising Regulation Department.
     
  2. A numbered tabular list identifying each communication provided pursuant to item 1 of this letter. Please also include the dates of distribution of each communication, the manner in which it was distributed, and, if applicable, an internal reference number.
     
  3. Evidence that each communication provided pursuant to item 1 of this letter received written approval by a registered principal prior to use, as required by NASD Rule 2210(b)(1). State the name and title of the registered principal who gave the approval and the date that the approval was given.
     
  4. The offering document for any specific hedge fund or fund of hedge funds discussed in the communications submitted pursuant to item 1 of this letter.
     
  5. Any disclosure statement or similar document that your firm provides to customers or prospects when promoting hedge funds or funds of hedge funds.
     
  6. The portion of your firm’s written supervisory procedures concerning the production, approval, and distribution of advertisements and sales literature related to hedge funds pursuant to NASD Rule 3010, as in effect during 2008.
     
  7. The completed “RESPONSE TO SPOT-CHECK REQUEST” form attached to this letter.

 

Response to Spot Check Request (PDF 13 KB)