Final answer:
Financial services advertisements and sales literature must be approved by a Principal and retained for a set period, as required by regulatory compliance practices.
Step-by-step explanation:
The subject in question pertains to a regulatory compliance practice within the financial services industry. Advertisements and Sales Literature, often in the realm of securities and investments, must be approved in writing by a Principal before they are distributed. This is to ensure that all information released to the public is accurate, not misleading, and complies with regulatory standards. The material must then be retained for a specific period, which is typically in line with the rules established by regulatory bodies like the Financial Industry Regulatory Authority (FINRA) in the United States.
For instance, FINRA Rule 2210 requires that retail communications (which include most advertisements and sales literature) must be approved by a Principal and records of both the communications and the approvals must be maintained for at least three years from the date of last use. A principal in this context is typically a registered individual with managerial responsibilities who has the authority to exercise control over the firm's operations, including compliance with applicable securities laws and regulations.