Alert April 01, 2008

FINRA Issues Regulatory Notice Regarding Elimination of Principal Pre-Approval Requirement for Sales Material Previously Filed by Another Member

FINRA issued a Regulatory Notice announcing the March 26, 2008 effectiveness of an amendment to NASD Rule 2210 that creates an exception to the Rule’s registered principal pre-approval requirements to allow a member firm to use sales material without principal pre-approval if another firm has filed the sales material and received a letter from FINRA stating that the sales material appears consistent with applicable standards.  The Regulatory Notice also announces the effectiveness of an amendment to NASD Rule 2210 that codifies the FINRA staff interpretation that a firm must maintain records of advertisements, sales literature and independently prepared reprints for a period beginning on the date of first use and ending three years after the date of last use.  See the January 15, 2008 Alert for a more detailed discussion of these amendments.