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Advertising Regulation

FINRA Rule 2210

FINRA Rule 2210 governs broker dealers' communications with the public including communications with retail and institutional investors. The rule provides standards for the content, approval, recordkeeping and filing of communications with FINRA.

Firms, in general, must comply with FINRA Rule 2210 when communicating with the public, including communications with retail and institutional investors. The rule establishes standards for the content, approval, recordkeeping and filing of communications with FINRA.

There are three categories of firm communications defined and regulated by FINRA Rule 2210.

  1. Retail communication - Any written communication, including electronic, distributed or made available to more than 25 retail investors within any 30 calendar-day period
  2. Correspondence - Similar to retail communication, but is limited to 25 or fewer retail investors
  3. Institutional communication - Any written communication, including electronic, distributed or made available only to institutional investors, such as banks, insurance companies and registered investment companies, among others. A firm's internal communications are not covered by this definition.

FINRA's Advertising Regulation Department reviews firms' advertisements and other communications with the public to ensure they are fair, balanced, not misleading and comply with the standards of the SEC, MSRB and SIPC advertising rules. The department reviews more than 100,000 communications every year that are submitted either as required by FINRA's rules or voluntarily by firms.

After reviewing the communications, the department provides firms with written commentary and if it finds egregious violations of the rules, the staff will instruct a firm to cease using the communication and may refer the matter for disciplinary action.

FINRA Rule 2210 Interpretive Guidance Questions and Answers

How to Submit Communications for Review

Firms can file communications for review via Advertising Regulation Electronic Files (AREF), an online application. In addition, firms can use AREF to view, print and save the department’s review letters. The vast majority of communications are filed electronically through AREF. However, firms still wishing to submit hard copies must use the Filing Cover Sheet. Effective September 28, 2015, FINRA migrated the AREF system to a new platform that allows firms to submit advertising-related files through a wide variety of formats and to submit larger files.  

For more details about the system, please see the Advertising Regulation Electronic Files page.

Filings Review

Through this fee-based program, the department reviews communications broker-dealers file primarily in response to the requirements set forth in FINRA's rules. The department reviews the communications and provides written commentary to the firms, and if the department finds egregious violations, the staff will instruct a firm to cease using the communication and may refer the matter for disciplinary action.

Advertising Regulation Frequently Asked Questions

Advertising Regulation Resources

Targeted Examinations

FINRA's Advertising Regulation Department periodically reviews communications that have not been previously filed or subject to the filing requirements from select groups of firms. These targeted exams, or sweeps, generally target areas of regulatory concern, such as a new type of product, or an investor protection issue such as how a firm is using social media (e.g. Facebook, Twitter, LinkedIn, blogs) in the conduct of its business. If a review reveals any rule violations, the department will provide a written Review Letter to the firm and look into the preparation and use of the material. It also may refer the matter for disciplinary action.

FINRA has issued a series of advertising-related Targeted Examination Letters.

Education

FINRA's educational materials highlight news, regulatory updates and other compliance topics. You can find advertising-related education using the following links.

Contact Information

Telephone: (240) 386-4500
Fax: (240) 386-4568
Address: Advertising Regulation Department
9509 Key West Avenue
Rockville, MD 20850

FINRA Communications and Disclosure Rules

SEC Advertising Rules

MSRB Advertising Rules

Rule G-21  Advertising

SIPC Advertising Rules

SIPC Bylaws Article 10 Member Advertising

FINRA Amends Section 13 of Schedule A to the FINRA By-Laws to Establish Charges for New Option to File Websites and Web Pages in Native Format
October 5, 2017
Guidance on Social Networking Websites and Business Communications
April 25, 2017
FINRA Requests Comment on FINRA Rules Impacting Capital Formation
April 12, 2017
FINRA Requests Comment on Proposed Limited Safe Harbor From FINRA Equity and Debt Research Rules for Desk Commentary
April 12, 2017
FINRA Requests Comment on Proposed Amendments to Rules Governing Communications with the Public
February 10, 2017
SEC Approves Amendments to Rules Governing Communications With the Public
October 26, 2016
SEC Approves FINRA’s Capital Acquisition Broker (CAB) Rules
October 17, 2016
SEC Approval of FINRA Rule 4518 (Notification to FINRA in Connection with the JOBS Act)
January 29, 2016
Use of FINRA Logo
January 8, 2016
SEC Approves Rule Requiring Members’ Websites to Include a Readily Apparent Reference and Hyperlink to BrokerCheck
December 7, 2015
FINRA Filing Requirements and Review of Regulation A Offerings
September 8, 2015
SEC Approves Consolidated Rule to Address Conflicts of Interest Relating to the Publication and Distribution of Equity Research Reports
August 26, 2015
SEC Approves Rule to Address Conflicts of Interest Relating to the Publication and Distribution of Debt Research Reports
August 26, 2015
Guidance on Rules Governing Communications With the Public
May 22, 2015
FINRA Requests Comment on Proposed Amendments to Rules Governing Communications With the Public
May 18, 2015
SEC Approves Amendments to FINRA Rule 2310 and NASD Rule 2340 to Address Values of Direct Participation Program and Unlisted Real Estate Investment Trust Securities
January 5, 2015
FINRA Requests Comment on a Revised Proposal to Adopt Consolidated FINRA Rule 2231 (Customer Account Statements)
September 16, 2014
SEC Approves Amendments to FINRA Rule 2210 to Exclude Research Reports on Exchange-Listed Securities From Filing Requirements and Clarify the Standards Applicable to Free Writing Prospectuses
July 11, 2014
April 2014 Supplement to the Security Futures Risk Disclosure Statement
May 23, 2014
FINRA Requests Comment on a Revised Proposal to Require a Hyperlink to BrokerCheck in Online Retail Communications With the Public
April 30, 2014
FINRA Requests Comment on the Effectiveness and Efficiency of its Communications With the Public Rules
April 8, 2014
SEC Approves New Supervision Rules
March 19, 2014
SEC Approves Amendments to Uniform Branch Office Registration Form (Form BR)
March 19, 2014
FINRA Requests Comment on Proposed Funding Portal Rules and Related Forms
October 23, 2013
FINRA Provides Guidance on Disclosure of Fees in Communications Concerning Retail Brokerage Accounts and Individual Retirement Accounts
July 18, 2013
FINRA Provides Guidance on Communications With the Public Concerning Unlisted Real Estate Investment Programs
May 2, 2013
FINRA Provides Guidance on New Rules Governing Communications With the Public
January 7, 2013
FINRA Requests Comment on a Revised Proposal to Identify and Manage Conflicts Involving the Preparation and Distribution of Debt Research Reports
October 11, 2012
SEC Approves New FINRA Rule 5123 Regarding Private Placements of Securities
September 5, 2012
Changes to Advertising, Corporate Financing, New Membership and Continuing Membership Application, Central Registration Depository and Branch Office Annual Registration Fees
June 26, 2012
SEC Approves New Rules Governing Communications With the Public
June 14, 2012
SEC Approves Consolidated Telemarketing Rule
April 2, 2012
FINRA Requests Comment on Proposed Amendments to NASD Rule 2340 to Address Values of Unlisted Direct Participation Programs and Real Estate Investment Trusts
March 7, 2012
FINRA Requests Comment on a Proposal to Identify and Manage Conflicts Involving the Preparation and Distribution of Debt Research Reports
February 17, 2012
January 2012 Supplement to the Options Disclosure Document
February 9, 2012
Heightened Supervision of Complex Products
January 17, 2012
FINRA Provides Guidance on Application of Communications Rules to Disclosures Required by Department of Labor
January 13, 2012
FINRA Reminds Firms of Their Obligations Regarding the Supervision of Registered Persons Using Senior Designations
November 11, 2011
FINRA Provides Guidance on Advertising Regulation Issues
October 27, 2011
FINRA Requests Comment on Proposed Amendments to NASD Rule 2340 to Address Values of Unlisted Direct Participation Programs and Real Estate Investment Trusts in Customer Account Statements
September 29, 2011
FINRA Provides Guidance on Prohibition Against Offering Favorable Research to Induce Investment Banking Business
September 12, 2011
Guidance on Social Networking Websites and Business Communications
August 18, 2011
New Implementation Date for and Additional Guidance on the Consolidated FINRA Rules Governing Know-Your-Customer and Suitability Obligations
May 18, 2011
FINRA Requests Comment on Proposed New FINRA Rule 3190 to Clarify the Scope of a Firm’s Obligations and Supervisory Responsibilities for Functions or Activities Outsourced to a Third-Party Service Provider
March 29, 2011
FINRA Revises Sanction Guidelines
March 22, 2011
FINRA Requests Comment on Concept Proposal to Identify and Manage Conflicts Involving the Preparation and Distribution of Debt Research Reports
March 11, 2011
FINRA Revises the Sanction Guidelines
February 9, 2011
January 2011 Supplement to the Options Disclosure Document
February 7, 2011
FINRA Requests Comment on Proposed Amendments to FINRA Rule 5122 to Address Member Firm Participation in Private Placements
January 11, 2011
SEC Approves Consolidated FINRA Rules Governing Know-Your-Customer and Suitability Obligations
January 10, 2011
SEC Approves Consolidated FINRA Rules Governing Know-Your-Customer and Suitability Obligations
January 10, 2011
Application of Rules on Communications With the Public and Institutional Sales Material and Correspondence to Certain Free Writing Prospectuses
October 21, 2010
Sales Practice Obligations for Commodity Futures-Linked Securities
October 20, 2010
FINRA Reminds Firms of Their Sales Practice and Due Diligence Obligations When Selling Municipal Securities in the Secondary Market
September 20, 2010
August 2010 Supplement to the Security Futures Risk Disclosure Statement
September 7, 2010
May 2010 Supplement to the Options Disclosure Document
June 15, 2010
Obligation of Broker-Dealers to Conduct Reasonable Investigations in Regulation D Offerings
April 20, 2010
FINRA Reminds Firms of Responsibilities When Providing Customers with Consolidated Financial Account Reports
April 8, 2010
FINRA Reminds Firms of Their Sales Practice Obligations With Reverse Exchangeable Securities (Reverse Convertibles)
February 12, 2010
Guidance on Blogs and Social Networking Web Sites
January 25, 2010
FINRA Reminds Firms of Their Responsibilities Under FINRA Rule 2330 for Recommended Purchases or Exchanges of Deferred Variable Annuities
January 21, 2010
December 2009 Supplement to the Options Disclosure Document
December 29, 2009
FINRA Reminds Firms of Their Sales Practice Obligations Relating to Principal-Protected Notes
December 17, 2009
SEC Approval and Effective Dates for New Consolidated FINRA Rules
October 15, 2009
FINRA Requests Comments on Proposed New Rules Governing Communications with the Public
September 21, 2009
SEC Approval and Effective Date for New Consolidated FINRA Rules
August 17, 2009
FINRA Reminds Firms of Their Obligations With Variable Life Settlement Activities
July 30, 2009
FINRA Requests Comment on Proposed Consolidated FINRA Rule Governing Investment Company Securities
June 17, 2009
FINRA Reminds Firms of Sales Practice Obligations Relating to Leveraged and Inverse Exchange-Traded Funds
June 11, 2009
SEC Approves Amendments to NASD Rule 2821 Governing Purchases and Exchanges of Deferred Variable Annuities
June 11, 2009
FINRA Reminds Firms of Their Obligation to Provide Accurate Information in Disseminating, or Using Services to Disseminate, Indications of Interest
May 27, 2009
FINRA Provides Guidance on its Enforcement Process
March 18, 2009
SEC Approves Rule Relating to Supervision of Market Letters
February 5, 2009
FINRA Reminds Firms of Their Sales Practice Obligations with Regard to the Sale of Securities in a High Yield Environment
December 16, 2008
FINRA Reminds Firms of Their Sales Practice Obligations with Regard to Cash Alternatives
December 16, 2008
Customer Account Statements: FINRA Provides Guidance on Estimated Annual Income and Estimated Yield
December 12, 2008
SEC Approves Amendments to NASD Rule 2220 to Update the Standards for Options Communications
December 5, 2008
FINRA Addresses Firms’ Retail Foreign Currency Exchange Activities
November 4, 2008
Guidance on Disclosure Concerning the U.S. Treasury Department's Temporary Guarantee Program for Money Market Mutual Funds
October 17, 2008
FINRA Requests Comment on Proposed Research Registration and Conflict of Interest Rules
October 14, 2008
Special Allowance to Permit Bulk Exchanges of Shares of Certain Reserve Funds
September 18, 2008
June 2008 Supplement to the Options Disclosure Document
August 26, 2008
FINRA Requests Comments on Proposed New Rules Governing Communications About Variable Insurance Products
July 28, 2008
SEC Approves Amendments to NASD Rule 2810 (Direct Participation Programs)
July 7, 2008
Guidance Relating to Illiquid Investments
June 12, 2008
SEC Approves Amendments to Eliminate the Requirement for the Senior Registered and Compliance Registered Options Principals (SROP and CROP)
May 22, 2008
The Obligation of Firms When Supervising their Registered Representatives' Use of Marketing Materials to Establish Expertise
May 20, 2008
Proposed Consolidated FINRA Rules Governing Supervision and Supervisory Controls
May 14, 2008
FINRA Issues Guidance to Broker-Dealers on Partial Redemptions of Auction Rate Securities
April 30, 2008
Foreign Research Analyst Exemption from the Research Analyst Qualification Examination
April 7, 2008
Member Firm Disclosure and Supervisory Review Obligations
April 7, 2008
SEC Approves Amendment to NASD Rule 2210 to Create an Exception to the Principal Approval Requirements for Certain Filed Sales Material
March 26, 2008
SEC approves amendments to NASD Rule 3010(g)(1) to Exempt Locations that Solely Conduct Final Approval of Research Reports
December 19, 2007
FINRA Provides Guidance Regarding the Review and Supervision of Electronic Communications
December 7, 2007
SEC Approves New NASD Rule 2821 Governing Deferred Variable Annuity Transactions
November 6, 2007
Amendments to NASD IM-2210-4: Web Site References to FINRA Membership and Limitations on the Use of FINRA's Name and Other Corporate Names Owned by FINRA
October 5, 2007
FINRA Reminds Firms of Their Obligations Relating to Senior Investors and Highlights Industry Practices to Serve these Customers
September 10, 2007
NASD and NYSE Request Comment on Proposed Joint Guidance Regarding the Review and Supervision of Electronic Communications;
June 14, 2007
SEC Approves Rule 2342 Setting Forth Requirements for Providing SIPC Information to Customers
June 8, 2007
NASD Requests Comment on Proposed Rule 2721 to Regulate Member Private Securities Offerings
June 5, 2007
Portfolio Margin Risk Disclosure Statement and Written Acknowledgement to be Furnished to Customers Using a Portfolio Margin Account
March 19, 2007
NASD Requests Comment on Proposed Amendments to Rules 3010(g) and 2711 in Connection with the Rule Harmonization Project with the NYSE
February 22, 2007
Codification of Interpretations to Rule 2711;
January 24, 2007
SEC Approves Amendment to Interpretive Material 2210-4 (Limitations on Use of NASD's Name) Requiring Firms that Refer to their NASD Membership on a Web Site to Provide a Hyperlink to www.nasd.com
January 8, 2007
SEC Approves Amendments to NASD Rules 2210 and 2211 to Require Disclosure of Fees and Expenses in Mutual Fund Performance Sales Material
September 1, 2006
SEC Approves Amendments to NASD Rule 2211 to Require Principal Pre-Use Approval of Certain Member Correspondence Sent to 25 or More Existing Retail Customers within a 30 Calendar-Day Period
August 24, 2006
Member Obligations with Respect to the Sale of Existing Variable Life Insurance Policies to Third Parties
August 9, 2006
NASD and NYSE Joint Interpretive Guidance on Fixed Income Research
July 31, 2006
Extension of Effective Date of NASD Uniform Branch Office Definition and Certain Form BR and Form U4 Filing Requirements from May 1, 2006 to July 3, 2006 Joint Interpretive Guidance from NASD and the NYSE Relating to Uniform Branch Office Definition Under NASD Rule 3010(g)(2) and NYSE Rule 342.10
March 21, 2006
NASD Revises Sanction Guidelines
March 7, 2006
SEC Approves Permanent Rules Concerning Bond Mutual Fund Volatility Ratings
January 20, 2006
SEC Approves Uniform Branch Office Registration Form (Form BR) and Conforming and Technical Changes to Forms U4 and U5
October 6, 2005
SEC Approves Uniform Branch Office Definition and Related Interpretive Material
October 6, 2005
NASD Provides Guidance Concerning the Sale of Structured Products
September 12, 2005
Member Responsibilities for Supervising Sales of Unregistered Equity-Indexed Annuities
August 8, 2005
NASD Requests Comment on Proposal to Prohibit All Product-Specific Sales Contests and to Apply Non-Cash Compensation Rules to Sales of All Securities
May 9, 2005
SEC Approves Amendments to Rule 2711 to Prohibit Research Analysts from Participating in a Road Show and from Communicating with Customers in the Presence of Investment Banking Personnel or Company Management about an Investment Banking Services Transaction
May 3, 2005
Guidance Regarding Rule 3012(a)(1) Requirement to Test and Verify a Member's Supervisory Policies and Procedures
April 14, 2005
NASD Requests Comment on Proposal to Require Principal Pre-Use Approval of Member Correspondence to 25 or More Existing Retail Customers within a 30-Calendar-Day Period
April 13, 2005
NASD Requests Comment on Proposal to Require Pre-Use Filing of Advertisements and Sales Literature for New Types of Securities and of Television, Video and Radio Advertisements
April 6, 2005
NASD Announces Exemption from the Research Analyst Qualification Requirements (Series 86 and 87) for Certain Employees of Foreign Affiliates Who Contribute to Member Research Reports
April 4, 2005
NASD Issues Guidance on Section 1031 Tax-Deferred Exchanges of Real Property for Certain Tenants-in-Common Interests in Real Property Offerings
March 2, 2005
NASD Adopts New Sanction Guidelines
March 1, 2005
NASD Announces Exemption from the Analysis Portion of the Research Analyst Qualification Examination (Series 86) for Certain Applicants Who Prepare Only "Technical Research Reports"
February 17, 2005
SEC Approves Amendments to Rule 2212 Concerning Frequency of Updates From the National Do-Not-Call Registry
January 28, 2005
Guidance Regarding the Application of the Supervisory Control Amendments to Members' Securities Activities, Including Members' Institutional Securities Activities
January 28, 2005
NASD Provides Updated Options Exemption Listing for the Trading Activity Fee
January 7, 2005
NASD Alerts Members to Concerns When Recommending or Facilitating Investments of Liquefied Home Equity
December 8, 2004
SEC approves NASD Interpretive Material to Rule 2210 regarding member firms' use of investment analysis tools
November 16, 2004
SEC Approves New NASD Qualification Requirements for Supervisors of Research Analysts
November 10, 2004
Impermissible Use of Negative Response Letters for the Transfer of Mutual Funds and Variable Annuities (Changes in Broker-Dealer of Record)
October 5, 2004
SEC Approves New Rules and Rule SEC Approves New Rules and Rule Amendments Concerning Supervision and Supervisory Controls
October 4, 2004
SEC Announces Immediate Effectiveness of the Deletion of IM-2210-4(b) and Rule Series 3400 as Obsolete
August 24, 2004
NASD Seeks Comment on Proposed Rule to Impose Specific Sales Practice Standards and Supervisory Requirements on Members for Transactions in Deferred Variable Annuities
June 9, 2004
NASD Reminds Members of Their Duty to Ensure Proper Application of Discounts in Sales Charges to Sales of Unit Investment Trusts (UITs)
March 30, 2004
NASD and NYSE Provide Further Guidance on Rules Governing Research Analysts' Conflicts of Interest
March 9, 2004
SEC Approves Amendments to NASD Rules Concerning Member Participation in the National Do-Not-Call Registry
March 2, 2004
NASD Reminds Member Firms of their Obligations Regarding Mutual Fund Transactions and Directs Review of Policies and Procedures
September 5, 2003
NASD Requests Comment on Proposed Amendments to Rule 3010 to Require Heightened Supervision Plans for Associated Persons with a Specified Threshold of Industry/Regulatory-Related Events
September 5, 2003
SEC Approves Extension of Pilot Relating to Bond Mutual Fund Volatility Ratings
August 28, 2003
SEC Approves Amendments to Rules Governing Research Analysts' Conflicts of Interest
August 3, 2003
SEC Approves Amendments to NASD Rules Governing Member Communications with the Public
July 7, 2003
New Series 23 Examination
July 1, 2003
Clarification for Members Regarding Supervisory Obligations and Recordkeeping Requirements for Instant Messaging
June 18, 2003
Sales Material for Municipal Fund Securities
March 24, 2003
SEC Approves New Rules and Rule Amendments Concerning Security Futures
October 24, 2002
SEC Approves New Rules and Rule Amendments Concerning Security Futures
October 24, 2002
Clarification of Member Obligations Regarding Brokered Certificates of Deposit
October 17, 2002
Use of Negative Response Letters for the Bulk Transfer of Customer Accounts
September 11, 2002
NASD Requests Comment on Proposed Amendments to NASD Rule 3010(g)(2) ("Branch Office Definition")
August 21, 2002
NASD Requests Comment on Proposed Interpretative Material Regarding Investment Analysis Tools
August 15, 2002
SEC Approves Rule Governing Research Analysts Conflicts of Interest
June 26, 2002
NASD Adopts Amendments Regarding the Posting of Margin Disclosure and Day-Trading Risk Disclosure Statements on Web Sites
June 11, 2002
Member Obligations Regarding Long-Term or Brokered Certificates of Deposit
May 8, 2002
Rules Relating to Bond Mutual Fund Volatility Ratings Extended Two Years
September 10, 2001
NASD Regulation Requests Comment On Proposed Amendments To Rule 2210, Communications With The Public
July 2, 2001
SEC Approves Day-Trading Rules
September 11, 2000
NASD Reminds Members of Their Responsibilities Regarding the Sale of Variable Life Insurance
June 16, 2000
SEC Approves New Rules Relating to Bond Mutual Fund Volatility Ratings
April 10, 2000
NASD Regulation Reminds Members of Their Responsibilities When Advertising Recent Mutual Fund Performance
April 10, 2000
The NASD Reminds Members of Their Responsibilities Regarding the Sales of Variable Annuities
May 1, 1999
SEC Approves Changes to Rules Regarding Membership and Registration; Investigation and Sanctions; and Conduct and Code of Procedure
February 1, 1999
NASD Regulation Issues Guidance Regarding Stock Volatility
February 1, 1999
SEC Approves Rule Amendments Requiring Review of Incoming, Written Correspondence
January 1, 1999
NASD Reminds Members of Their Obligations to Disclose Mutual Fund Fees
December 1, 1998
Notice of Increase in Advertising Review Fees
December 1, 1998
SEC Approves Rule Change Relating to Standards for Individual Correspondence
October 1, 1998
NASD Reminds Members of Supervisory and Inspection Obligations
May 1, 1998
SEC Approves Rules Regarding Supervision, Review, and Record Retention of Correspondence
January 1, 1998
Electronic Delivery of Information Between Members and Their Customers
January 1, 1998
Application of NASD Conduct Rules to Group Variable Contracts and Other Exempted Securities
May 1, 1997
Approval of Telemarketing Amendments
January 1, 1997
NASD Notice to Members 96-86 - December 1996
December 1, 1996
NASD Notice to Members 96-86 - December 1996
December 1, 1996
NASD Solicits Comment on Proposed Rules Governing Supervision, Review, and Record Retention of Correspondence
December 1, 1996
Clarification of Members' Suitability Responsibilities Under NASD Rules with Special Emphasis on Member Activities in Speculative and Low-Priced Securities
September 1, 1996
Supervisory and Other Obligations Related to Use of Electronic Media
July 1, 1996
Interpretive Letter
A member firm may include related performance information in institutional communications concerning variable contracts, subject to the stated conditions discussed in the letter.
April 16, 2018
FAQ
This FAQ provides interpretive guidance on when to file an advertisement with FINRA.
September 27, 2017
Interpretive Letter
A member firm may include related performance information in institutional communications concerning continuously offered closed-end funds, subject to the stated conditions discussed in the letter.
June 12, 2017
FAQ
Answers to Frequently Asked Questions regarding FINRA Rule 2210 - Communications with the Public
March 10, 2017
Interpretive Letter
A member firm that provides services to Non-ERISA Plan participants and beneficiaries may rely on the filing exclusions contained in Rule 2210(c)(7)(B) and (C) in preparing and distributing a “Model Disclosure” as described in the letter, subject to the stated conditions and obligations discussed in the letter.
March 22, 2016
Interpretive Letter
The use of related performance information in institutional communications, subject to specific conditions, is consistent with the applicable standards of FINRA Rule 2210.
May 12, 2015
Interpretive Letter
Direct Participation Programs Representatives are eligible to sell shares of a non-listed business development company that qualifies as a regulated investment company under the Internal Revenue Code at the time of sale.
December 1, 2014
Interpretive Letter

NASD Rule 2711 - Research Analysts and Research Reports

April 28, 2014
Interpretive Letter

FINRA Rule 2210 - Communications with the Public

April 22, 2013
Interpretive Letter
Request for Interpretive Guidance Under NASD Rule 2711
February 8, 2013
Interpretive Letter

NASD Rule 2110 and NYSE Rule 402.30—Partial Redemption Allocations and Disclosure Practices in Auction Rate Securities

July 9, 2008
Interpretive Letter
NASD Rule 2210 - Communications with the Public
September 28, 2007
Interpretive Letter
NASD Rule 2210 - Communications with the Public
September 6, 2007
Interpretive Letter
A Member's Responsibilities Regarding the Outsourcing of Certain Activities
August 15, 2006
Interpretive Letter
NASD Rule 2211 - Institutional Sales Material and CorrespondenceFree writing prospectuses are not subject to Rules 2210 and 2211 or the filing requirements of Rules 2710 and 2720
August 1, 2006
Interpretive Letter
NASD Rule 2110 - Standards of Commercial Honor and Principles of TradeMember ceasing to offer retail brokerage accounts with investment advisory and prime brokerage services may use negative response letters to accomplish the bulk transfer of its retail brokerage accounts to a newly formed broker-dealer.
June 2, 2006
Interpretive Letter
Member ceasing to offer retail brokerage services may use negative response letters to accomplish the bulk transfer of its retail brokerage accounts to an affiliated broker-dealer.
February 3, 2005
Interpretive Letter

NASD Rule 2210 - Communications with the Public

The posting to a Web site of performance information as required by California state law does not constitute an advertisement under NASD Rule 2210.
November 29, 2004
Interpretive Letter

NASD Rule 2110 - Standards of Commercial Honor and Principles of Trade

Member whose firm will cease to exist upon merger with an acquiring member that does not generally offer retail brokerage services may use negative response letters to accomplish the bulk transfer of its retail accounts to a broker-dealer affiliate of the acquiring member.
November 10, 2004
Interpretive Letter
The use of negative response letters to change the broker-dealer of record on a mutual fund or variable insurance product account held directly at the issuer.
November 8, 2004
Interpretive Letter
Negative response letters may be used to change the broker-dealer of record for customers' "direct application" mutual fund and variable annuity accounts in situations involving the acquisition or merger of a member firm, where the acquiring or surviving entity is the legal successor-in-interest to the member firm.
October 20, 2004
Interpretive Letter
Member may not present related performance information to "qualified institutional buyers" who are potential investors in 3(c)(1) funds.
September 14, 2004
Interpretive Letter
Joint NASD and NYSE interpretation that individuals involved in the development of certain quantitative equity research ratings model are not “research analysts” as defined by the SRO research analyst conflict of interest rules.
August 20, 2004
Interpretive Letter
Guidance regarding use of related performance information in sales material for private equity funds.
December 30, 2003
Interpretive Letter

Further interpretive advice to members concerning the sale of hedge funds.

October 2, 2003
Interpretive Letter

Member that serves as investment consultant and sub-administrator for certain mutual funds, but does not serve as either the principal underwriter or an investment adviser or sub-adviser to the funds, may state in its public communications that it does not offer proprietary products.

May 29, 2003
Interpretive Letter
Negative response letters may be used for a bulk transfer of customer accounts to a broker-dealer that will provide certain trading services that have been discontinued by member, provided the letters contain the disclosures described in Notice to Members 02-57.
May 1, 2003
Interpretive Letter
The use of negative response letters to transfer customers from one introducing broker/dealer to another may conflict with a member's obligation to observe high standards of commercial honor and just and equitable principles of trade.
February 3, 2003
Interpretive Letter
The use of negative response letters to transfer customers serviced by "independent contractor" registered representatives from one introducing broker dealer to another may conflict with a member's obligation to observe high standards of commercial honor and just and equitable principles of trade.
February 3, 2003
Interpretive Letter
Rule 2210 does not require member to approve, file or maintain as advertising records certain statistical information that is regularly updated on firm's web site.
January 28, 2002
Interpretive Letter

Applicability of NASD rules to a member's use of a translator for group retirement plan enrollment presentations.

November 26, 2001
Interpretive Letter

The limited supervisory functions that can be properly delegated to registered representatives also may be assigned to persons registered as Foreign Associates under NASD Rule 1100. Foreign Associates, however, may not perform the functions that require a principal registration.

June 4, 2001
Interpretive Letter
The use of negative response letters to transfer customers from one introducing broker to another may conflict with a member's obligation to observe high standards of commercial honor and just and equitable principles of trade.
October 16, 2000
Interpretive Letter
NASD Regulation Department of Enforcement will not, unless directed otherwise, institute enforcement action against NASD member firms that send group e-mails to two or more existing or prospective customers that qualify as "institutional accounts" under Rule 3110(c)(4) or existing customers that qualify as "qualified purchasers" under Section 3(c)(7) of the Investment Company Act of 1940 without securing prior approval by a registered principal of those communications, subject to the condition that the firms supervise and review the group e-mails in accordance with the standards of Rule 3010(d).
December 17, 1999
Interpretive Letter
Rule 2220 was intended to apply only to standardized options; therefore, advertisements, educational material and sales literature regarding conventional options need not be submitted to the Department for pre-use review and approval. However, advertisements, educational material and sales literature regarding conventional options remain subject to the general standards in both Rules 2210 and 2220 that prohibit untrue, false or misleading statements.
March 5, 1999
Interpretive Letter
NASD members and associated persons who are required to use hypothetical illustrations under New York State's Regulation 60 with respect to internal and external replacements of life insurance and annuity contracts, would not be prevented under NASD Rule 2210 from using such illustrations. However, any use beyond what is required by Regulation 60 may require the illustrations to be filed with NASD Regulation as sales literature.
February 5, 1999
Interpretive Letter

Application of Rule 2210 to the use of investment projections and marketing material when registered persons are conducting advisory services.

July 30, 1998
Interpretive Letter
The use of a combined name on certain public communications to reflect a recent merger of two member firms and create a single global "brand," would not violate the requirement of Rule 2210 that public communications include the name of the member firm.
June 8, 1998
Interpretive Letter
A registered representative presently licensed with a member providing telemarketing services, under certain conditions, would not be required to also be registered with a client member.
April 22, 1998
Interpretive Letter

A broker/dealer is not required to register as branch offices under Rule 3010(g) non-public office locations where existing customers can use computer terminals to access their accounts and enter orders.

March 16, 1998
Interpretive Letter

Staff interpretation on the use of electronic signatures under NASD Rules 3110(c)(1)(C) and 3010(d).

November 26, 1997
Interpretive Letter
Advertising Department's response to recommendations of the Investment Company Institute concerning member use of hyperlinks.
November 11, 1997
Interpretive Letter

Application of NASD Rules to the sale of group variable products.

April 11, 1997
Interpretive Letter
Requirements of member firms in maintaining do-not-call lists under NASD Rule 3110.
October 31, 1995
Guidance
FINRA rules require that member's communications with the public be accurate, fair and not misleading. An investor considering the series of a broker-dealer, including a "discount" broker, should be informed of all factors material to his use of such broker-dealer's services. There are many variables in the charges and services offered by broker-dealers and it isn't reasonable to expect that every variation be included in media advertising, given the expense of such advertising. Relevant factors not included in advertisements should be communicated to persons responding, however. Certain items should be included in the advertisement itself, when the advertisement would be misleading in the absence of their disclosure.