Advertising Workshop (Advertising Track) Tuesday, May 22 1 ...Advertising Workshop (Advertising Track) Tuesday, May 22, 2018 ... #Austin, TX vacation was an adventure! Now it’s time

© 2018 Financial Industry Regulatory Authority, Inc. All rights reserved. 1

Advertising Workshop (Advertising Track) Tuesday, May 22 1:45 p.m. – 2:45 p.m. During this highly interactive and dynamic session, attendees apply advertising rules to several mock advertisements and uncover the hidden concerns. Attendees work in small groups and present their findings to fellow participants, while moderators present the regulatory perspective, clarify any misperceptions and answer questions. Moderator: Anthony Maher Associate Director FINRA Advertising Regulation Panelists: Derek Ashworth Associate Director FINRA Advertising Regulation Kimberly Flanders Principal Analyst FINRA Advertising Regulation

© 2018 Financial Industry Regulatory Authority, Inc. All rights reserved. 2

Advertising Workshop (Advertising Track) Panelist Bios: Moderator: Anthony T. Maher is Associate Director in FINRA’s Advertising Regulation Department. He served in a similar role at NASD before its 2007 consolidation with NYSE Member Regulation, which resulted in the formation of FINRA. His chief responsibility is managing staff members dedicated to the routine review of member advertisements. Mr. Maher also speaks at FINRA and industry conferences and events, including the Department’s Advertising Regulation Conference, where he conducts a highly interactive educational “hands-on” advertising review workshop. Prior to joining the NASD in 1995, he was a registered principal and a compliance analyst for a broker-dealer subsidiary of a life insurance company. Mr. Maher holds a J.D. from George Mason University Antonin Scalia Law School, a master’s degree from Georgetown University and a bachelor’s degree from George Mason University. Panelists: Derek Ashworth is Associate Director in FINRA’s Advertising Regulation Department. The department protects investors by ensuring broker-dealer members of FINRA use communications that are fair, balanced and not misleading. Mr. Ashworth’s primary responsibility is managing staff members dedicated to the routine review of member firm communications. Mr. Ashworth also participates in the Department’s outreach efforts including serving as a panelist in prior FINRA conferences and presenting during selected FINRA Compliance Boot Camps. He has been with the Advertising Regulation Department for 18 years. Prior to joining FINRA, Mr. Ashworth was a program manager for a business and education partnership at Nova Southeastern University in Fort Lauderdale, FL. Previous to this role, he was a specialty banker and registered representative with First Union in West Palm Beach, FL. Mr. Ashworth received his bachelor’s degree from Stetson University and completed his M.B.A. at Johns Hopkins University. Kimberly Flanders is Principal Analyst in FINRA’s Advertising Regulation Department. She has served in this role since 2002 and joined the Department in 1996. Prior to joining FINRA, Ms. Flanders was an investigator for the Resolution Trust Company in Washington, DC. Previous to this role, she was a staff member of the Permanent Subcommittee on Investigations, chaired by the former U.S. Senator from Georgia, Sam Nunn. Ms. Flanders received her bachelor’s degree from the University of Georgia.

2018 FINRA Annual ConferenceMay 21 – 23, 2018 • Washington, DC

Advertising Workshop (Advertising

Track)

FINRA Annual Conference | © 2018 FINRA. All rights reserved.

Moderator

Anthony Maher, Associate Director, FINRA Advertising

Regulation

Panelists

Derek Ashworth, Associate Director, FINRA Advertising

Regulation

Kimberly Flanders, Principal Analyst, FINRA Advertising

Regulation

Panelists

1


Communication #1: Sunset Reflection Fund Magazine Advertisement

2


Communication #2: Social Media

3


Communication #3: Newspaper Advertisement

4


Communication #4: Banner Ad with Landing Page

5

Advertising Review Workshop

2018 Financial Industry Regulatory Authority, Inc. All rights reserved.

Advertising Workshop (Advertising Track) Tuesday, May 22, 2018 1:45 p.m. – 2:45 p.m.

Apply advertising rules to several mock advertisements and uncover the hidden concerns during this

highly interactive and dynamic session. Attendees will work in small groups and present their findings to

all Workshop participants while moderators present the regulatory perspective, clarify any

misperceptions and answer questions.

Moderator: Anthony Maher Associate Director FINRA Advertising Regulation Department

Panelists: Derek Ashworth Associate Director FINRA Advertising Regulation Department

Kimberly Flanders Principal Analyst FINRA Advertising Regulation Department

I. Introduction II. Open discussion and analysis among workshop attendees in small groups

III. Presentation of small group analyses to full audienceIV. Department presentation

Communication # 1: Sunset Reflection Fund Magazine Advertisement


Do your investments reflect your values?

We believe they should.

Sunset Reflection Fund

Sunset Distributors, LLC Member FINRA & SIPC

The Sunset Reflection Fund is an actively managed mutual fund that follows a sustainable investing approach combining rigorous analysis with equally rigorous environmental, social and governance (ESG) analysis in order to identify investments.

Risk Information: The market price of equity securities may fluctuate significantly, rapidly and unpredictably, causing the Fund toexperience losses. The prices of equity securities generally are more volatile than the prices of debt securities. Market Risk Conditionsin a broad or specialized market, a sector thereof or an individual industry may adversely affect security prices, thereby reducing thevalue of the Fund’s investments. To the extent the Fund takes significant positions in one or more specific sectors, countries or regions,the Fund will be subject to the risks associated with such sector(s), country(ies) or region(s) to a greater extent than would be a morebroadly diversified fund. Companies that issue value securities may have experienced adverse business developments or may besubject to special risks that have caused their securities to be out of favor. The Fund may invest in companies that may not beexpected to experience significant earnings growth, but whose securities the investment adviser believes are selling at a price lowerthan their true value. Companies that issue value securities may have experienced adverse business developments or may be subjectto special risks that have caused their securities to be out of favor. If the investment adviser’s assessment of a company’s prospects iswrong, or if the market does not recognize the value of the company, the price of its securities may decline or may not approach thevalue that the investment adviser anticipates. The Fund is actively managed. The investment techniques and decisions of theinvestment adviser and the Fund’s portfolio manager(s) may not produce the desired results. As with all mutual funds, investors maylose money by investing in the Fund.

Consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing; the prospectus contains this and other information about the investment company; call your financial advisor or visit www.reflectionfund.com to obtain a prospectus. Read it carefully before investing.

© Sunset Distributors LLC. All rights reserved.


http://www.reflectionetf.com/

Additional Information

Filing Information

• Print advertisement filed with the Advertising Regulation Department on May 4, 2018.• Published in national financial publications.• Date of registered principal approval: May 2, 2018.• Anticipated date of first use: May 10, 2018.

Fund Information

• Open-end actively managed mutual fund.• Benchmark: S&P 500 Index.• Investment Objective: Seeks long-term growth of capital.• Strategy: Bottom-up stock selection is focused on earnings growth consistency, capital

discipline, relative valuation and identified catalysts with potential for stock priceappreciation. Environmental, Social and Governance (ESG) research is an integralcomponent of securities analysis.

• Risks: Market risk, including potential loss of principal. Derivatives risk, Non U.S.Securities Risk, Value Securities Risk.


Communication # 2 – Social Media


home @friends #tag

3,991 Chirps

152 Following

450 Followers

©2018 ChirperAbout Help Careers Privacy Terms Advertisers

Compose a new Chirp…

Chirps

David Copperfield @DCopperfield 1 week agoExtreme market volatility continues with no end in sight! I can’t stress enough that investors should consult an advisor! #Volatility #Advisors

David Copperfield @DCopperfield 1 week agoLooking for an Advisor? I’ve got 20 years experience and have $500m+ assets under management. Check my record (or anyone else’s) at brokercheck.finra.org.#Brokercheck

David Copperfield @DCopperfield 2 weeks agoExcellent article by my friend and self-made millionaire, William “Wild Bill” Hagy:Smart Money Means Not Losing Money. http://www.investoreducation.com/articles/Hagy

David Copperfield @DCopperfield 3 weeks ago#Home. #Austin, TX vacation was an adventure! Now it’s time to get back to work for my clients! Need to PROTECT and GROW their assets! Not easy in the current tumultuous market!

David Copperfield @DCopperfield 4 weeks agoStock market drops 600 points! Stock market gains 375 points! Rising interest rates cause bond prices to tumble! What to DO? Contact me! I have the experience, education and professional certifications ! I can help! #Advice #Protect #Assets

David Copperfield @DCopperfield 5 weeks agoEducate yourself about finance and investing. You don’t need to be an expert. Just follow expert ADVICE! #Smart #Investing #Funds #Stocks #Bonds #Diversification http://www.barrons.com http://www.wsj.com

David Copperfield @DCopperfield 6 weeks ago#Diversify! Diversify! Diversify! Diversifying your investments is vital more than ever with this crazy market. Diversification can help protect you during market downswings and help you earn steadier growth and income over the long-term.

David Copperfield @DCopperfield 7 weeks agoWith the increasing market volatility, you need to diversify to help protect yourself. And diversification in today’s market mean more than stock, bonds or mutual funds. Think real estate/international/alternative investments & strategies. #Diversify #International #Alternative #Strategies

David Copperfield @DCopperfield 9 weeks agoStay the course! Don’t bail out of the markets because of a little volatility! This is a time to stay invested. Read the article 5 Reasons to Not Sell. Don’t ignore history. History shows that markets always rebound – sometimes spectacularly!

David Copperfield@DCopperfieldHusband. Father. Son. Author and Financial Advisor with Charles Dickens Financial Services LLC


http://www.investoreducation.com/articles/Hagy

http://www.barrons.com/

http://www.wsj.com/


Filing Information:

• David Copperfield is a registered representative and registered investment advisor of CharlesDickens Financial Services LLC.

• Charles Dickens Financial Services LLC is a registered broker/dealer and registered investmentadvisor.

• David Copperfield’s personal Chirper page.

• Obtained during a sweep focused on social media.

• Chirper page not reviewed or approved by a registered principal of the firm.

• Chirper page not retained by the firm.




The road to passive investing is getting so crowded that passive investing is becoming less efficient.

While we do not dismiss the notion of passive investing, we strongly recommend allocating a portion of your clients’ portfolios to products that utilize alternative strategies.

The Risk Mitigation Strategy Fund is an actively managed fund that uses a long-term strategy designed to take advantage of pricing inefficiencies in the S&P VIX Short-Term Futures Inverse Daily Index (the “VIX”).

The Fund’s strategy provided investors with performance that delivered an average FOUR TIMES the average annual return of the S&P 500 from 2008 through December 31, 2017.

We take the road less traveled.

With this long-term record of outperformance, the Risk Mitigation Strategy Fund should be a part of your clients’ portfolios. As disciples of diversification, we believe that no one product should dominate an investor’s portfolio. But we also believe that diversification should include alternatives to the traditional stocks and bonds.

Carefully read before investing the prospectus, which contains important information regarding the Fund’s investment objective, risks, charges and expenses. Call 1-800-867-5309 for the prospectus.Alternative Fund Distributors LLC. Member FINRA SIPC

Disclosures: As with all mutual funds, an investment in the Fund entails risk, including the possibility of a loss of principal. Stocks may fluctuate and bond prices may fall if interest rates rise.


Filing information:

• Print advertisement filed April 18, 2018.• Intended date of first use May 18, 2018.

Fund information:

• Inception date: July 1, 2017.• Investment objective: The Fund seeks capital appreciation and income.• Investment strategy:

o The Fund will invest in options linked to stock market volatility using a proprietarystrategy.

o The Fund is expected to have an inverse correlation to the S&P 500 Short Term FuturesInverse Daily Index (VIX).

When the VIX is flat or declining, the Fund is expected to have positive returns; When the VIX is increasing, the Fund is expected to have negative returns.

o Generally, purchased options are sold to adjust portfolio exposure or when theadviser believes the risk inherent in the investment is greater than the potentialreward or when more attractive investments are available.

• Risks:o The Fund is new and has no operating history.o The Fund is non-diversified and, as such, may be more susceptible to more volatility

than a diversified fund.o Risks associated with the use of options and leverage, etc.

• Fund performance:o Year-to-date: -95.47%.o Since inception: -93.56%.

• Benchmark index performance chart illustrates performance from 2008 – 3/31/2018.


Communication #4: Banner Advertisement with Landing Page


Roll Over Your Old 401k to the Maximus IRA

It’s as easy as 1 - 2 - 3!CLICK HERE TO LEARN MORE!

Banner Ad


Roll Over Your Old 401k to the

Maximus IRAIt’s as easy as 1 - 2 - 3!

Roll Over Your Old 401k to the Maximus IRAin Three Simple Steps:

1. Open Maximus IRA2. Fund your account3. Begin building your portfolio

Why choose the Maximus IRA?

Your investments remain tax-deferred until you withdraw them You will enjoy a wide range of investments to choose from:

7,500 mutual funds and ETFs Stocks, bonds, annuities and other products

Access to personal support, on-line tools, resources & services No cost to transfer You will not pay an annual account fee

Before investing carefully consider the investment objectives, risks, charges and expenses in the Maximus Funds. This and other important information can be found in the prospectus, which should be read carefully and can be obtained here.

There may be alternatives that you should consider before investing in the Maximus IRA.

Maximus Financial Services LLC


Filing information disclosed by firm:

• Maximus Financial Services LLC filed banner advertisement and landing page onMarch 31, 2018.

• Date of first use: March 1,2018.

• Date of registered principal approval: March 15, 2018.

Prospectus and account information:

• The Maximus Rollover IRA charges annual maintenance fees, fees for closing ortransferring an account, and has fees associated with the investments in theaccount such as the funds’ management fees and expenses.

• The Maximus Funds are no-load but have ongoing management fees and expenses.

• The Maximus Rollover IRA is offered by Maximus Financial Services LLC.

Additional information from analyst research:

• The banner ad links directly to the landing page.

• Other than the Maximus Rollover IRA, investors have the option of leaving themoney in their former employer’s 401(k), rolling over to their new employer’s401(k), or cashing out the account value.

• Some of these other options involve potentially lower fees and charges than theMaximus Rollover IRA. There may be also be differences among these options interms of level of service, withdrawal penalties, legal and creditor protections,required minimum distributions, etc.

• There are varying potential tax consequences associated with the options investorsmight choose.

• Maximus Financial Services LLC is a FINRA member firm.



Advertising Review Workshop

Answers for the

Hands-on Sample Communications


Communication #1: Magazine Print Advertisement

Main concerns:

Disclosures:

The disclosures appear in a dense and lengthy footnote that may inhibit an investor’s

understanding of the advertisement and the product being discussed.


Communication #2: Social Media

Main Concerns:

Exaggerated, unwarranted, promissory or misleading claims:

Reference and implication that a registered person can “Protect” and “Grow” an investor’s

assets is exaggerated, unwarranted and promissory in that the statement does not reflect the

inherent risks and uncertainty of investing.

Claim that “Diversification can help protect you during market downswings . . .” [emphasis

added]is unwarranted and misleading.

Procedural concerns:

Personal social media Chirper page contains “business as such” of the broker/dealer, Charles

Dickens Financial Services LLC.

o Concerns include:

Supervision

Record keeping

Adoption and Entanglement issues:

By linking to two specific articles, the broker/dealer has adopted the content of the articles.

o Supervision

o Recordkeeping

Linking to www.barrons.com or www.wsj.com does not constitute adoption or entanglement as

both sites are independent of the broker/dealer. Further, these sites are continually updated

and may include information that could be detrimental to the broker/dealer, which has no

authority, ability or control to add or remove any content.

http://www.barrons.com/

http://www.wsj.com/



Main Concerns:

Omission of material information:

While the performance chart is accurate through December 31, 2018, it should have been

updated to reflect the significant effects of recent market volatility on the Index.

No differentiation between the Index strategy and performance and the Fund.

Fund’s performance should have been disclosed.

Risks of the strategy and an investment in the Fund are not disclosed. Mere generic risk

disclosures are not sufficient.

Footnote concerns:

The placement of the risk disclosure at the foot of the advertisement beneath a generic

disclaimer may inhibit an investor’s understanding of the Fund as it appears to minimize the

risks of the Fund and its strategy.


Communication #4: Banner Advertisement and Landing Page

Main Concerns:

Procedural concerns:

• Failed to file the banner ad and landing page with the Department in a timely manner – withinten business days of first use.

• Failed to obtain registered principal approval prior to use with the public.

Omission of material information:

• Fails to balance claims of “You will not pay an annual account fee” and “No cost to transfer”with prominent and proximate disclosure of what fees do apply when opening a new IRAaccount, maintaining such an account, or choosing an IRA rollover transaction.

• Fails to disclose that there are options other than an IRA rollover available to the investor andthat the investor should carefully consider all options.

Documents

Advertising Workshop (Advertising Track) Tuesday, May 22 1 ...Advertising Workshop (Advertising Track) Tuesday, May 22, 2018 ... #Austin, TX vacation was an adventure! Now it’s time