07 Feb 09 This sounds utterly laughable, but can a Series 6 holder sell mutual funds by direct-mail?

Filed in Investing

jules4128 | 11 Feb 2009 2:34 am
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
Good Steward | 11 Feb 2009 12:13 pm
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.