FINRA is conducting targeted examinations 0n spread-based structured products.  The Advertising Regulation Department and Enforcement's Case Development Team are conducting the sweep, for the review period, 1/1/11 to 8/31/11. Firms that are chosen to participate have been (will be) asked to provide the following documents and information for the entire 8-month review period  [or for different time frames, which will be noted in the text]: Item 1.  All ads and sales literature [NASD Rule 2210(a)] concerning spread-based structured products ("SBSPs").  This request is for general marketing communications as well as those on behalf of specific products.  Do not provide any communications that have already been filed with Advertising Regulation. 2.  Institutional sales material [NASD Rule 2211(a)] to train registered persons on SBSPs - i.e. "Educational Material".  Provide both paper and e-copies of the Educational Material. 3.  Complete the attached "Approval and Recordkeeping" Excel spreadsheet, listing each communication ID'd in Items 1 and 2 above, including:

• A description of each communication,
• The dates of distribution of each communication,
• The manner in which it was distributed,
• The name and title of the registered principal who approved the material for use, and
• The date that the approval was given.

4.  Evidence that each ad or item of sales lit ID'd in Item 1 received written approval by a registered principal prior to use. [NASD Rule 2210(b)(1)] 5.  Evidence of supervisory reviews for Educational Material ID'd in Item 2 - i.e., that they had been implemented and carried out.  [NASD Rule 2211(b)(1)(B)] 6.  Copies of offering documents for any specific SBSPs discussed in the communications ID'd in Items 1 and 2. 7.  A transaction blotter or list (in searchable electronic format) of all SBSP transactions including, but not limited to, the following:

• Transaction date,
• Purchase or sale,
• Account number,
• Account name,
• Name of Registered Representative,
• Registered Representative's Branch Office,
• Name of issuer,
• Product name,
• Symbol or CUSIP,
• Initial interest rate (if applicable),
• Reference index to which product is linked,
• Minimum initial investment required,
• Coupon rate,
• Total principal amount of transaction, and
• Total sales compensation and fees for the transaction.

8.  Description of Firm's process for determining individual customer suitability for sales of SBSPs, standards for ensuring suitability of the transaction, and sample copies of all documents used by Firm to determine suitability.  Include a description of minimum eligibility standards (if any) and explain how Firm ensured clients met these standards.  Include sample copies of any documentation of these standards and customer eligibility assessment. 9.  Copies of all risk disclosure documents used by Firm in connection with the sale of SBSPs. 10.  For SBSPs sold, provide description of all training provided to RRs and their supervisors, along with copies of all training materials utilized  - if not previously provided as part of this request. 11.  Detailed description of all SBSPs-related sales contests, cash and non-cash incentives, promotions, programs and initiatives in effect during review period. 12.  List and description of all exception reports used by Firm to monitor sales of SBSPs.  Provide sample of each report identified. 13.  Copy of Firm's WSPs, compliance manuals, or branch manuals that pertain to SBSP communications - including production, approval and distribution, sales, and supervision. 14.  Copies of all customer complaints (written and oral), and arbitration/litigation claims relating to, referring to, or concerning any SBSPs sold by Firm and Firm's response(s). General Instructions. Responses should be accompanied by a letter providing the following information:

• (i) whether a reasonable search has been conducted to locate responsive documents - and identify whose computer files were searched;
• (ii) whether all responsive documents found have been produced - if no documents responsive to a request were found, please so state;  and,
• (iii) whether any responsive documents have been withheld and the grounds for such withholding. Your response should also be accompanied by an index that identifies the documents produced.

Lists requested electronically may be provided in Excel, Access, or delimited file format.

• The first row of each file should contain the field name for each column.
• For each file provided, please supply a document listing the field names, the data type, field length, and description.
• If acronyms or codes are used in any field, provide an explanation of the acronyms or codes in the description.

Due Date. This request is made pursuant to FINRA Rule 8210.  The Firm's response to this request must be received no later than December 7, 2011. This inquiry should not be construed as an indication that FINRA or its staff have determined that any violations of federal securities laws or FINRA, NASD, NYSE, or MSRB rules have occurred. [FINRA Targeted Exams, November 2011]