For financial advisors, this storm develops when they want to develop their own sales and marketing brochures, letters, ads and other materials. ?When you create new things, they have to go through the compliance-review process,? explains Tracy DeWald, senior vice president and general counsel for Securities America Inc., an Omaha-Neb.-based broker-dealer.
Depending on the complexity, that can take time.?
has some advice for these creative types.
First, consider whether your ?new idea? might have already been thought of?and approved. ?If they would just call their firm, insurer or mutual fund company and explain the approach, they might find there?s already something that could be co-branded or pulled off the shelf that accomplishes most of what they want to do,? he
likewise encourages advisors to keep it simple. ?I tell reps if they don?t talk about ?X,? then I don?t have to file this with the NASD, and they don?t have to worry about the extra, time-consuming steps that filing involves,? he
Given the complexity of products, that?s not always easy.
also discourages advisors from trying to sell products via brochures. ?There?s a tendency to want to use a letter or brochure to sell something,? he
This generally calls for lots of details, and the more details a promotional piece contains, the more scrutiny it will face.
That means delays.
suggests that advisors talk about themselves, saying something like, ?I believe in a balanced investment approach for my clients.?