S6: Marketing, Prospecting, & Sales Presentation Flashcards Preview

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Flashcards in S6: Marketing, Prospecting, & Sales Presentation Deck (54)
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Sale Literature

means any written communication generally available to the public, other than advertising, and must be accompanied by a prospectus


Selling Away
(Private Securities Transaction)

Engaging in a private securities transaction without first notifying your firm is a violation


Private Securities Transactions

-it is a violation of any NASD/FINRA rules for any person associated with the member firm to engage in Private Securities Transactions outside the firm is regular course of business without first informing their member in writing

-if APPROVED the transaction must be recorded on the books and records of the registered representatives firm & the firm shall supervise the persons participation as if it were executed on behalf of the member

-if DISAPPROVED the registered representative shall not participate in the transaction email her


Outside Business Activities

- no registered person of a member firm shall be employed by, or accept compensation from any other person as a result of any business activity, OTHER THAN PASSIVE

-prompt WRITTEN notice is required


Advertising is defined as:

any materials designed for use in the public medium to solicit business, such as radio, TV, newspapers etc.


Statement of Additional Information

-must be given (in addition to a prospectus) to any client upon request


Advertising Rules

-any written communication used to solicit the issues MUST be accompanied or proceed by a prospectus

- may NEVER contain an application to invest


Omitting Prospectus Rule

-permits material used prior to prospectus delivery

-such advertisements may NEVER contain an application to invest and must contain information regarding how to obtain a full prospectus


Communication Categories
(Institutional Communications)

-includes written (including electronic) Communication that is distributed or made available only to institutional investors


Institutional Investors


-investment advisor registered with the SEC

-any other entity with total assets of ate sat 50 million

-govt entity

-an employee benefit plan that has at least 100 participants


Communication Categories
(Retail Communication)

-includes any written (including electronic) communication that is distributed or made available to more than 25 retail investors within any 30 calendar day period

-requires an appropriately qualified registered principal of the member firm to approve each retail communication before the earlier of its use or its filing


Communication Categories
(Correspondence Communication)

-includes any written (including electronic) communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar day period


Record Keeping
(Communication Categories)

-all retail and institutional communications records shall be kept in a separate file for a period beginning on the date of first use an ending 3 years from the date of last use


Broker/Dealers must keep records of all correspondence for _____ years



Hypothetical Illustrations

-using assumed rates of return may be used to demonstrate the way a variable life insurance policy operates

-an illustration may use any combination of assumed investment returns up to and including a gross rate of 12% provided that one of the returns is 0% gross rate



-requires an organization that performs telemarketing to maintain a do not call list of customers who do not want to be called and keep a customer's name on the list and INDEFINITELY from the time the request is made

-firms must probably identify themselves via caller ID, transmitting the telephone number, and when available by telephone carrier, the name of the member firm



(allowed time to call)

8am - 9pm (local time at the called persons location)


Firms must follow their own Firm Specific Do Not Call List as well as the National Do Not Call List. The member firm must access the updated national do not call list a minimum every _____ days



Telemarketing rules do not apply to ______

your clients


The Cold Call rules do not apply to a person who has made an inquiry to the firm with in the previous ______ immediately preceding the date of the telemarketing call

3 months


Use of FINRA's Name is ______

NOT allowed by allowed but FINRA


Sales literature that contains mutual fund performance information except for money market funds must contain total return data for _______ year periods

1, 5 and 10


If a firm uses materials to train or educate registered representatives of other broker-dealers (whether affiliated or not) the material would be considered an ________ communication



The firm is required to approve prior to use all _______ communications




- If payment of more than $100 made the testimonial must disclose it is a paid testimonial

- the testimonial may not be representative of the experience of other customers

- the testimonial is no guarantee of future performance or success


Generic Advertising _______ to be be accompanied by a prospects

does NOT need


Shareholder Statements
(A complete financial statement must be provided ________ & _______ to mutual fund shareholders

semi-annually & annually


Each OSJ must be inspected ______



Each branch office that supervises one or more non-branch locations must be inspected ________



Branch offices that do not supervise one or more non-branch locations must be inspected every _______

3 years