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This sounds utterly laughable, but can a Series 6 holder sell mutual funds by direct-mail?
Are marketing techniques also regulated? Of course, by direct mail, I don’t mean sending out a post card that says “Send me a check!” but something more like “For more information, call this number.”
I’m interested in selling mutual funds, but not by calling people on the phone day and night. I would much rather find clients through other means–even something as silly as direct mail. Thanks for your help.
negative. SEC regulation prohibits socilitation through direct mail or telemarketing by brokers [title 6 holders in this situation] There is a longer list of compliance regulations including a list of do’s and don’ts - just google Series 6 + SEC and you’ll have a pdf file that’s about 90 pages long which will go into very tedious detail and will answer all your questions
I’m not sure what Jules is referring to unless it is specifically for series 6 holders. I know lots of brokers who build their business by calling people and using mailing campaigns. I think the term “direct-mail” is misleading. It sounds like check which fund you like and send you a check. I think you are more referring to marketing by mail. With this being said I wouldnt come up with my own literature to send out. Many fund companies will already have pre made literature thats already filed with the regulators. In fact you may want to look at American Funds Advisor website they have postcards you can use in your mailing campaign.
You should also keep in mind that mailing campaigns can be costly and unfruitful. If I were you I would build up a network or centers of influences to get referrals. But if you must, at least pair up the mailing campaign with a phone call. Of course you should also check with the Do Not Call list before doing so.