Targeted Examination Letters

September 2012

 

Re: Spot-Check of Non-Traded REIT Communications

 

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, 2012 through June 30, 2012, concerning Non-Traded Real Estate Investment Trusts (“NTR”). This request is for general marketing communications as well as those on behalf of specific NTRs1. Please note that this request excludes communications that have already been filed with the Advertising Regulation Department. Please provide both paper and electronic copies of the communications.
     
  2. The completed “Approval and Recordkeeping” Excel spreadsheet attached to this letter that lists each communication identified in Item 1 above, including:
    • a description of each communication provided pursuant to Item 1of this letter,
    • the dates of distribution of each communication,
    • the manner in which it was distributed,
    • the name and title of the registered principal who gave the approval and
    • the date that the approval was given.
       
  3. Evidence that each advertisement or item of sales literature 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).
     
  4. The offering document for any specific NTR discussed in the communications submitted pursuant to Item 1.
     
  5. The portion of your firm’s written supervisory procedures concerning the production, approval and distribution of NTR communications in effect during the subject time period (January 1, 2012 through June 30, 2012).
     
  6. The completed “RESPONSE TO SPOT-CHECK REQUEST” form attached to this letter.
     

Please provide the information noted in Items 1 through 6 no later than October 2, 2012.

 


 

RESPONSE TO SPOT CHECK REQUEST

 

TO:Advertising Regulation Department
 FINRA
 9509 Key West Avenue
 Rockville, MD 20850-3389

 

FROM:CRD# 00001Reference: SR2012-0000-0000
  ABC Brokerage 
  123 Financial Center 
  Anytown, USA 00000 

   

Please check applicable response(s):

 

____  All Non-Traded REIT advertisements and sales literature used during the time period of January 1, 2012 – June 30, 2012 are attached.

 

____  No Non-Traded REIT advertisements and sales literature of any kind were used during the time period of January 1, 2012 – June 30, 2012.

 

____  All Non-Traded REIT advertisements and sales literature used during the time period of January 1, 2012 – June 30, 2012 were filed with the Advertising Regulation Department, or have been attached.

 

COMMENTS:
_____________________________________________________________________________________

 

REGISTERED PRINCIPAL'S SIGNATURE: _________________________________________________

REGISTERED PRINCIPAL’S NAME:   ________________________ 

REGISTERED PRINCIPAL’S TITLE:   ________________________

DATE: __________

 


 

1 We have observed that these types of communications are often contained in the Investor Package sent to prospects

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