A customer just emailed me a very common question. Chances are, you've wondered about this one a few times yourself.
Can you clear up the concept of correspondence and sales literature by pointing out the difference between the two?
The reason the regulators distinguish the two is that for correspondence the firm just needs a monitoring program. With sales literature (or advertising), the materials must be pre-approved.
So, letters/faxes/emails to existing clients = correspondence, regardless of the number of recipients. But, you can only send letters/faxes/emails to 24 PROSPECTS in a 30-day period and call the communication "correspondence." If it's sent to 25+ recipients (and it always would be), it becomes sales literature subject to pre-approval.
Sales literature is different from advertising in that sales literature is delivered to a targeted, controlled audience. It includes research reports, market letters, flyers, brochures, cold-calling scripts. Advertising is blasted out to the masses: tv, radio, newspaper, billboards, websites.
See the actual rule and definitions at: