registered representative has discovered an article
in a major news magazine that makes statements
that are highly favorable about a mutual fund that
his company offers. If he wants to use the article
in making presentations to prospects, what are
He may only use the information if it has been
approved by a principal of his firm.
B) There are no restrictions to using material
which is in the public domain.
C) The use of such material with public customers
is only permitted if approved by the SEC prior to
D) The information in the magazine article would
have to be filed with the NASD within 30 days of
The correct answer is c.
The use of magazines, as well as reprints, falls
under the NASD rules regarding communications with
the public, and as such, are considered to be sales
literature. Such material must be approved by a principal
prior to use with public customers.