Public Communications and Compliance Adam Wolff Susan Pohlman

Public Communications and Compliance Adam Wolff & Susan Pohlman

General Standards - FINRA 2210 • Applies to all communications • Is the first consideration when communications are reviewed by compliance

IARs • The SEC places additional communication Rules on Investment Advisors • The big one: no client testimonials • The SEC defines advertising as any communication sent to more than ONE person

Correspondence • Written Communication that is distributed or made available to 25 or FEWER retail investors within any 30 day calendar period

Retail Communications • Communication that is distributed or made available to more than 25 retail investors • All securities business related retail communications must be reviewed by compliance Prior to use and may be filed with FINRA

Social Networking • Social Networking sites must be archived • FHC utilizes • Social Network pages must be reviewed promptly once the pages are created and the pages must be added to the Global Relay archiving service once approved

Online Communication Breakdown • Communication via: – – Publicly available websites – is considered Retail Communication Email – may be correspondence or Retail Communication Chat Room discussions – prohibited by FHC Instant Messaging/Texting– Prohibited by FHC

Websites • All websites must be approved by FHC compliance prior to going live and will likely need to be filed with FINRA • The website must contain a link to FINRA’s Brokercheck and the appropriate securities disclosures

Public Appearances/Seminars • Same compliance guidelines apply • A “seminar worksheet” must be completed and submitted to FHC Compliance before final approval will be given. – All seminar materials must also be approved prior to use • Invitations, presentation, handouts, etc…

Business Cards/Stationary • Must be approved by compliance prior to first use or reprint • Email signatures should also be submitted for approval prior to use

Disclosure • All securities related communications and materials must contain the following disclosure – Securities offered through First Heartland Capital Inc. Member FINRA/SIPC Advisory Services offered through First Heartland Consultants Inc. [DBA name] is not affiliated with First Heartland Capital, Inc. • First Heartland Capital, Inc. must be bolded • Member FINRA/SIPC must be displayed in 8 pt font or larger

Marketing Resources • FMG Suite • Marketing Pro

What is Wrong With This Ad?

Issues: • • Mentions specific Variable Annuity without any annuity disclosures Use promissory/misleading language when describing the advisor First Heartland Capital, Inc. is not bolded in the disclosure and the font of the disclosure is too small There is promissory/misleading language in the Safe Withdrawal Rate article John Refers to himself as a “Registered Investment Advisor” in the Safe Withdrawal Rate article Use of client testimonial when the rep is an IAR There is no branch office address listed on the ad