BLIND RECRUITING ADS

A blind recruiting ad is an ad placed by the member firm for the specific purpose of finding job applicants. Blind recruiting ads are the only form of advertising that does not require the member's name to appear in the ad. The ads may not distort the opportunities or salaries of the advertised position. All other ads are required to disclose the name of the member firm, as well as the relationship of the member to any other entities that appear in the ad.

GENERIC ADVERTISING

Generic advertising is generally designed to promote firm awareness and to advertise the products and services generally offered through the firm. Generic ads will generally include:

• Securities products offered (i.e., stocks, bonds, mutual funds)

• Contact name, number, and address

• Types of accounts offered [i.e., individual, IRA, 401(k)]

TOMBSTONE ADS

A tombstone ad is an announcement of a new security offering coming to market. Tombstone ads may be run while the securities are still in registration with the SEC and may only include:

• A description of the securities.

• A description of the business.

• A description of the transaction.

• Required disclaimers.

• Time and place of any stockholder meetings regarding the sale of the securities.

Tombstone ads must include the following:

• A statement that the securities registration has not yet become effective.

• A statement that responding to the ad does not obligate the prospect.

• A statement as to where a prospectus may be obtained.

• A statement that the ad does not constitute an offer to sell the securities and that an offer may only be made by the prospectus.

All retail communications is required to be approved by a principal of the firm prior to its first use. A general security principal (Series 24) may approve most retail communications. Any retail communications relating to options must be approved by a registered option principal or the compliance registered options principal. Research reports must be approved by a supervisory analyst.

 
< Prev   CONTENTS   Next >