In general, communications that currently would
be considered sales literature or advertisements
will be considered “retail communications” under the new rules, as will communications that currently qualify as independently prepared reprints if they are distributed to more than 25 retail investors within a 30 calendar- …
What is considered retail communication?
(5) “Retail communication” means
any written (including electronic) communication that is distributed or made available to more than 25 retail investors within any 30 calendar-day period
.
Is a website considered retail communication?
Under NASD Rule 2210, posts on interactive electronic forums are considered public appearances. 30 Under
FINRA Rule 2210
, such posts will be considered retail communications, assuming the forum is available to retail investors. … This provision is consistent with NASD Rule 2210(c)(8).
Which statements are correct regarding filing requirements for retail communication?
Retail communications for investment companies must be filed within 10 business days of first use if the communication does not include a performance ranking. For retail communications that do include a performance ranking, a
10 day pre-filing
is required.
Who approves retail communication?
1. What are the approval requirements for retail communications? FINRA Rule 2210(b) requires that all retail communications must be approved by an appropriately
qualified registered principal
before the earlier of its use or filing with FINRA’s Advertising Regulation Department.
Is a research report retail communication?
If a firm distributes or makes available a communication consisting of a reprint of an article from an independent publication, or a report published by an independent research firm, to more than 25 retail investors within a 30 calendar day period, is that communication a “retail communication”?
Yes
.
Who does Reg SP apply to?
[1] Reg S-P applies to
all broker-dealers, investment advisers, and investment companies operating within U.S. securities markets
, regardless of whether they have satisfied their registration obligation. Notably, OCIE only examines registered entities.
When can a broker dealer borrow and or lend money to customers?
FINRA Rule 3240 mandates that brokers cannot borrow money from customers or lend money to customers unless the situation meets one of the following criteria:
The broker-dealer has written procedures that allow customers and brokers to freely borrow money from and lend money to
one another.
Which of the following is a classification of communications with the public?
Financial Industry Regulatory Authority (FINRA) has three classifications of communication with the public:
correspondence is communication to 25 or fewer retail investors in a 30-day period
; retail communications is to more than 25 retail investors in a 30-day period; and institutional communication is going to banks.
Which of the following communications are subject to principal approval before first use?
(
All retail communications
are subject to approval by a registered principal before use. A branch office manager is not necessarily a principal.)
What is a ranking entity?
For purposes of this Rule, the term “Ranking Entity” refers to
any entity that provides general information about investment companies to the public
, that is independent of the investment company and its affiliates, and whose services are not procured by the investment company or any of its affiliates to assign the …
Which of the following is a classification of communications with the public quizlet?
Financial Industry Regulatory Authority (FINRA) has three classifications of communication with the public:
correspondence is communication to 25 or fewer retail investors in a 30-day period
; retail communications is to more than 25 retail investors in a 30-day period; and institutional communication is going to banks, …
What is institutional communication?
Institutional communication can be defined as
the type of communication carried out in an organized way by an institution and its representatives
, and is aimed at people and social groups that develop its activity.
Does retail communication need to be filed with FINRA?
FINRA Rule 2210(b) requires that
all retail communications must be approved by an appropriately qualified registered principal before the earlier of its use
or filing with FINRA’s Advertising Regulation Department. … any retail communication that is posted on an online interactive electronic forum.
What is the 2010 rule?
FINRA Rule 2010 is perhaps the single most important securities industry regulation. The rule requires that
all industry members conduct business with high standards of commercial honor
and that they maintain just and equitable principles of trade. The language used in this provision is intentionally broad.
In which case does correspondence need to be approved by a principal?
Correspondence need not be approved by a registered principal prior to use, unless it is distributed by a member to 25 or more existing retail customers within any 30 calendar-day period. [but]All correspondence is subject to the supervision and review requirements of
Rule 3010(d)
.
