The participation by RRs in investment-related chat rooms, without identifying themselves as being associated with a member firm, is not necessarily a violation of NASD rules. Because of the difficulties of supervision and the potential liabilities from participating in chat rooms, many firms limit or prohibit participation altogether. Member firms must supervise the investment-related activities of RRs including bulletin board activities. RRs must be aware of their firm's supervisory and review policies and comply with them, even if they are more restrictive than what is allowed under the NASD rules. Remember, these rules apply regardless of whether an RR is in the office or at home.
Many firms limit or prohibit participation on bulletin boards because of supervision difficulties.
The participation by RRs in investment-related bulletin boards, without identifying themselves as an associated person of a member firm, is not necessarily a violation of NASD rules. All supervision, recordkeeping, and conduct rules apply to RRs' activity on a bulletin board regardless of whether they identify themselves as RRs or not. RRs are accountable under NASD Conduct Rules and the federal securities laws for what they say regarding securities or services. Casual or off-handed statements on bulletin boards have the potential of crossing the line between being a reasonable opinion and an exaggerated or unwarranted claim. A registered principal is required to review contents prior to electronic posting.