RegulationsQuestion 59 of 110
An institutional communication is one distributed exclusively to:
a.Any customer with an account balance over $250,000
b.Institutional investors such as banks, insurance companies, registered investment companies, and qualifying entities
c.Employees of the member firm
d.Prospective retail customers who have signed a suitability waiver
Explanation
The institutional category depends on the type of recipient, not on account size or paperwork, and covers entities such as banks, insurers, registered investment companies, and other qualifying institutions. A wealthy individual is still a retail investor. Suitability obligations cannot be waived by a customer signature.
Law Reference: FINRA Rule 2210 (Communications with the Public)Practice all 110 questions free — no signup required.
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