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 Refer to General Standards Handout

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 Refer to Handout

Correspondence Written Communication that is distributed or made available to 25 or FEWER retail investors within any 30 day calendar period Any communications written on letterhead with the Broker/Dealer disclosure must be reviewed, even if it is not related to securities All incoming client correspondence regarding securities must be reviewed Any correspondence written by an unregistered staff person is not to be securities related in any form – including mailing prospectuses

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 Broker Check Link – must be readily apparent and appear on the websites home page and any “professional profile” page for registered persons A professional profile page is considered to be any page highlighting the registered person and discloses any more info aside from contact info and address.

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… When deciding to make a public appearance advisors must submit the following information to FHC: Name of organization to which they are speaking Time and place Name and address of the program chairperson or sponsor Name of those in attendance Topic and outline Powerpoint presentation, if applicable Literature used and/or distributed

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 8pt font or larger The advisory portion of the disclosure should only be included if the rep has a 65/66 FINRA 2210 (D)(3)(a) requires the name of the Broker/Dealer be the most prominent feature of the disclosure – This is why FHC must be bolded Member FINRA/SICP may not be smaller than 8pt font Mention other applicable disclosures such as prospectus, VA, and website disclosures

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