Payments Influencing Market Price (the Anti-Touting Prohibition)

What this video covers

• The two-part trigger for the FINRA anti-touting prohibition: anything of value (not just cash) given to influence publication that affects market price, whether or not price actually moves
• The three narrow exceptions: labeled paid advertising, federal touting-disclosure compliant content, and research reports that satisfy the research-analyst rule
• The federal touting-disclosure provision of the Securities Act of 1933: disclosure of receipt AND exact dollar amount of consideration, and its application to anyone (not just broker-dealers)
• How one undisclosed paid post layers four violations simultaneously: FINRA anti-touting, federal touting disclosure, federal anti-fraud, and FINRA content standards
• Why paid-advertising labeling does not override content standards: fair, balanced, and not-misleading requirements still apply regardless of disclosure labels
• The five required books-and-records elements for promotional content: contract, compensation records, communication copy, pre-publication principal review, and post-publication monitoring
• The SEC retention standard: three years total, with the first two years in an easily accessible location