2.5.6.2. Content Standards for Advertisements
Fair and balanced information. All advertisements must be based on the principles of fair dealing and good faith, must be fair and balanced, and must provide a sound basis for evaluating the facts in regard to any particular municipal security or type of municipal security, municipal financial product, industry, or service.
Cannot omit material facts. No municipal securities dealer may omit any material fact or qualification if the omission, in light of the context of the material presented, would cause the advertisements to be misleading.
No false or misleading statements or claims. Municipal securities dealers are prohibited from publishing false, exaggerated, unwarranted, promissory or misleading statements or claims in advertisements.
Legends and footnotes cannot mislead. Municipal securities dealers may place information in a legend or footnote only in the event that such placement would not inhibit a municipal advisory client’s or potential municipal advisory client’s understanding of the advertisement.
Balanced treatment of risks and benefits. Municipal securities dealers must ensure that statements are clear and not misleading within the context in which they are made, and that they provide balanced treatment of risks and potential benefits. An advertisement must be consistent with the risks inherent to the investment.
Audience must be considered. Municipal dealers must consider the nature of the audience to which the advertisement will be direct