New Hampshire Gov. John Lynch has signed Senate Bill 111, which clarifies disclosure requirements for financial advisors that advertise via television, radio or billboards.

The new law means advisors no longer need to include, in general advertising, lengthy disclosure statements that relate to the advisors’ broker-dealer relationships.

Previously, state securities officials had taken action against advisors that did not show the broker-dealer relationship in general advertisements, including billboard and television ads that relate to the sale of insurance products (see NU, May 9, 2005).

Lead sponsor of the bill was Sen. Robert Boyce, R-Alton.

David A. Kutcher, owner of DAK Financial Group, Alton, N.H., pushed hard for enactment. A marketer of equity index annuities and other insurance products as well as some securities, DAK had been cited in 2003 by the State Securities Bureau. The citation said DAK’s general advertisements did not identify DAK’s broker-dealer relationship, as required by the state’s securities laws. DAK took down the cited ads, but then Kutcher sought clarification of the relevant statutes from the state legislature, which allows citizens to initiate bills.

Kutcher contended that broker-dealer disclosure on general advertisements for a business dealing mostly in insurance is not helpful to consumers. The right place to explain and disclose such information is “belly to belly,” or when a firm is working directly with a customer at point of sale, he said.