NFP Securities of Austin, TX, agreed to settle FINRA charges over advertising materials that the firm approved for a registered rep's workshops.  The RR was promoting his retail equity-indexed annuity (EIA) business to senior citizens.  However, FINRA found several problems. 

• The materials contained false, exaggerated, unwarranted or misleading statements. 
• The firm failed to document it approval - i.e., with a principal’s signature or initial - of a piece of advertising material the RR used.
• The firm failed to maintain a record of its approval of a piece of the RR's advertising material. 
• The firm didn't supervise the representative’s workshops:  (i) it didn't require him to produce a script for the workshops;  (ii) it didn't attend any of the live workshops to confirm that the contents of the workshops complied with NASD rules;  (iii) it didn't confirm that only firm-approved materials were being used.

FINRA asserts that had the firm required the RR to submit a script, and had a supervisor should have attended his workshops, it would have discovered that the RR made statements, used materials and engaged in conduct that violated NASD Rules 2110 and 2210.  Failing to employ any of these controls, the firm was unable to prevent further violations of these rules.

NFP Securities will pay a $50K fine.   This is FINRA Case #2007011393902.  [Disciplinary Actions for June 2011]