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

Retail communication must be approved by a registered principal before first use, as it reaches more than 25 retail investors in a 30-day period.

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

Any written communication distributed or made available to more than 25 retail investors within any 30-day period is classified as retail 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 3110 requires firms to establish and maintain supervisory systems, including review of correspondence and internal communications.

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

Social media posts by registered representatives about firm products are considered public communications subject to FINRA content standards and supervisory review.

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

Testimonials must be accompanied by a disclosure that the experience described may not be representative of other clients' experiences.

(FINRA) FINRA Exams Practice Test

(FINRA) FINRA Exams Practice Test

FINRA Communication and Documentation 2