Business PracticesQuestion 71 of 100
Regarding advertising and sales literature used to offer securities in a state, the Administrator:
a.Has no authority over advertising of any kind
b.May prohibit only advertising that mentions past performance
c.May require prior approval of advertising for federal covered securities
d.May by rule require the filing of advertising and sales literature, except for federal covered securities and exempt securities and transactions
Explanation
The act allows the Administrator to require that prospectuses, pamphlets, circulars, letters, and other sales literature used in the state be filed, and material that is false or misleading may be halted. That filing authority does not extend to federal covered securities, where federal law preempts, or to exempt securities and exempt transactions. Antifraud authority over misleading advertising remains in all cases.
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