Financial Industry Regulatory Authority, Inc. (FINRA) filed a proposed rule change to NASD Rule 2210 (Communications with the Public) to create a new exception to the general principal review and approval requirements. The rule currently requires that a registered principal of a FINRA member firm approve in writing all advertisements, sales literature, and independently prepared reprints (collectively, sales material) prior to use. For any sales material concerning mutual funds and variable insurance products that are sold through intermediary firms, FINRA rules require registered principals at each of the intermediary firms that use the underwriter’s sales material to re-approve in writing each of these items used by their firms. Based on recommendations made by its Small Firms Rules Impact Task Force, and to eliminate what FINRA regards as a “compliance redundancy,” FINRA is proposing to create an exception to Rule 2210’s registered principal approval requirements for intermediary firms that use the sales material of another firm. This exception would apply only to sales material that another firm has filed with FINRA’s Advertising Regulation Department and for which the Department has issued a review letter finding that the material appears to be consistent with applicable standards.

 http://www.sec.gov/rules/sro/finra/2007/34-57010.pdf