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SDA Retail Communications Notice Clause

Book Publication Date: Jul 2013
Description: If an underwriter has reason to believe that a distributor is forwarding information to retail investors the underwriter must assume that all information they give to the distributor will be treated as retail communications. To avoid this, the underwriter may want to include a clause in the SDA requiring distributor to apprise them of what information they are giving to retail investors and to cease doing so if necessary. The sample clause included here covers such a situation.
Type: Contract Clauses
PLI Item #: 60263
Practice Area: Communications and telecommunications, Digital and mass media, Disclosure (Securities and other financial products), Regulation and compliance (Securities and other financial products), Securities and other financial products, Social media

Keywords: "selected dealer agreement"; "free writing prospectus"; underwriter; "broker-dealer"; FINRA; "Rule 2210(a)"; distributor; "filing requirements"; "structured notes"; "good faith and fair dealing"; "retail communications"; "principal approval"; "record retention"

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