When a broker-dealer has decided to provide its registered representatives with reprints from a magazine ...

By Investopedia Staff AAA
Q:
When a broker-dealer has decided to provide its registered representatives with reprints from a magazine article, which gives a highly-favorable rating to a mutual fund and these are to be used along with a prospectus in sales presentations, these materials:
   
A) Must be approved by a principal of the firm prior to use.
B) Require no approval because they are from an outside, authoritative publication.
C) Must be filed with the NASD and approved 5 days before first use.
D) Must be approved by the SEC prior to first use.
A:
The correct answer is A)
All sales literature, specifically including reprints, must be approved by a principal of the firm prior to use. The SEC does not approve or disapprove. The choice stating that these materials "must be filed with the NASD and approved 5 days before first use", is incorrect as to the approval and the number of days.

RELATED FAQS

  1. What are the differences between the Series 6 exam and the Series 7 exam?

    Learn about the regulatory exams needed to become a limited or registered representative and the main differences between ...
  2. Do I have to successfully complete the Series 7 exam before I can register for the ...

    There are no prerequisites to register for the Series 63 exam. However, once you have registered for the exam, you must schedule ...
  3. I completed the Series 6, do I have to complete the entire Series 7?

    After having written the Series 6 examination, there would be significant overlap with the Series 7 in areas such as mutual ...
  4. I need special accommodations when taking the Series 63 exam. How are such arrangements ...

    Learn more about special accommodations offered by Series 63 testing sites, and discover how to request special accommodations ...
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Professionals

    Should You Add A Securities License ...

Trading Center