Series 63: C.6 Broker-Dealers

C.6 Broker-Dealers

While broker-dealers are not subject to the Marketing Rule, they must follow the communications regulations of their state administrator and FINRA if they are a member. Note that broker-dealers cannot make any statements that imply that an advertisement is approved by the state administrator or any other regulator.

It is forbidden for broker-dealers to publish or circulate any kind of communication (including advertisements) that:

• • Is deceptive or misleading
• • Reports any transaction or quotation unless the broker-dealer believes that the transaction or quotation is bona fide (true)
• • Uses nonfactual data or conjecture
• • Uses displays to detract from a prospectus or disclosure
• • Makes a statement implying that a graph, chart,