FINRA Communication and Documentation 2

Question 1

Under FINRA Rule 2210, which category of communication requires prior principal approval before use?

Accepted Answer

Retail communication

Answer

Institutional communication

Answer

Correspondence with fewer than 25 retail investors

Answer

Internal memoranda

Question 2

A broker-dealer sends a promotional email to 30 retail investors. Under FINRA Rule 2210, this is classified as:

Accepted Answer

Retail communication

Answer

Correspondence

Answer

Institutional communication

Answer

Internal communication

Question 3

Which FINRA rule specifically governs the supervision and review of correspondence and internal communications?

Accepted Answer

FINRA Rule 3110

Answer

FINRA Rule 2010

Answer

FINRA Rule 4512

Answer

FINRA Rule 2111

Question 4

When a registered representative wants to post on a personal social media page about their firm's investment products, FINRA generally treats this as:

Accepted Answer

A form of public communication subject to firm supervision

Answer

Internal communication exempt from review

Answer

An institutional communication requiring no approval

Answer

Protected personal speech exempt from securities regulations

Question 5

Under FINRA rules, a testimonial used in retail communication must include which disclosure?

Accepted Answer

A statement that the testimonial may not be representative of other clients' experiences

Answer

The testimonial provider's net worth

Answer

The date the testimonial was originally given

Answer

The specific account return achieved by the testimonial provider

Question 6

A firm uses a third-party content provider to create retail communications. Under FINRA rules, responsibility for compliance with communication standards rests with:

Accepted Answer

The firm itself, even when using third-party content

Answer

The third-party content provider exclusively

Answer

FINRA, which pre-approves third-party content

Answer

The individual registered representative who distributes it

Question 7

Under FINRA Rule 2210, which statement about hypothetical performance results in retail communication is accurate?

Accepted Answer

They may be used if accompanied by required disclosures about assumptions and limitations

Answer

They are always prohibited

Answer

They require FINRA pre-approval in all cases

Answer

They are only permitted for institutional investors