Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Regulation and Compliance > Federal Regulation > SEC

SEC Approves Easing Of FINRA Sales Lit Review Rules

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

The U.S. Securities and Exchange Commission has approved an effort by the Financial Industry Regulatory Authority Inc. to simplify reviews of some types of investment product sales literature.

The SEC has granted an order that will permit FINRA, Washington, a securities industry watchdog, to ease sales literature review requirements.

The change would apply to brokers and other intermediary firms selling variable insurance products and mutual funds.

In some cases, the change will let an intermediary firm that gets sales materials from outside firms to use the materials without submitting the materials to a review by one of the intermediary firm’s own registered principals.

To benefit from the new exception, the intermediary firm would have to use the outside sales materials without changing the materials in a significant way or using the materials in a manner inconsistent with the requirements of FINRA’s advertising regulation department, SEC officials write in an announcement of the decision to approve the change.

The exception would apply only if the company that produced the sales materials has filed the materials with FINRA’s advertising review department and the department has issued a “letter finding that the material appears to be consistent with applicable standards,” SEC officials write.

The change is necessary because some intermediary firms have had to get principals to review hundreds or thousands of previously reviewed pieces of sales literature each year, SEC officials write.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.