Correspondence and Advertising Standards
Chapters in this video
- 0:00 Three regulators and the cast of characters
- 1:18 Why cheap flyers still trigger NASAA advertising rules
- 2:48 When truthful rocket-ship graphs become deceptive
- 3:58 Fake internet quotes and the bona fide bid trap
- 4:47 USA misleading filings versus NASAA investor protection
- 5:44 Registration applications and the paperwork lie trap
- 6:24 Aaron's four violations rapid-fire review
What this video covers
- Why NASAA's deceptive-advertising prohibition covers flyers, brochures, displays, and in-person sales pitches, not just formal ads
- How graphics or charts can violate NASAA rules even when factually accurate, if their purpose is to distract from required disclosures in a prospectus
- What bona fide means for bid and asked prices, and why republishing someone else's fabricated quote is still the broker-dealer's violation
- Where the Uniform Securities Act's misleading-filings prohibition applies: registration applications, financial statements, sales literature, and any document filed with the Administrator
- Why the USA protects the state administrator from bad paperwork while NASAA rules protect investors from misleading marketing
- How to distinguish a NASAA dishonest-practice violation from a USA misleading-filings violation based on whether the communication is public marketing or official paperwork
- The exam trap of assuming boring administrative filings are exempt from securities-law scrutiny
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