Trading, Accounts & Prohibited ActsQuestion 270 of 398
A firm plans to post an advertisement about a mutual fund on its public website, reaching thousands of retail investors. Generally, what must happen before it is used?
a.Nothing; website posts are exempt from review
b.The customer must sign a margin agreement
c.A registered principal must approve the retail communication before first use
d.The SEC must personally pre-clear the wording
Explanation
Retail communications generally must be approved by a registered principal before first use (with limited exceptions). Certain communications, such as those about registered investment companies, may also need to be filed with FINRA within stated timeframes.
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