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Enrollers handing out investment related information


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This question concerns the issue of whether it is a problem for an enrollment company that uses unlicensed workers to conduct 401(k) enrollemt meetings to hand out prospectuses and other investment related information. clearly, the DOL regs say that as long as you stick to certain things, the person is not "giving investment advice." However, is there any NASD rules that govern the distribution of prospectuses etc? I am inclined to think that as long as the enrollers stick within the parameters of the DOL regs, there wont be a problem.

Posted

Good question. I'm not aware of any NASD restrictions, but we are a non-NASD SEC goverened firm, so I'm not fully up to speed on the NASD rules. In general, I think your conclusion seems reasonable, but I could be proven wrong.

Jon C. Chambers

Schultz Collins Lawson Chambers, Inc.

Investment Consultants

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