RegulationsQuestion 60 of 110
Retail communications must generally be:
a.Approved by an appropriately registered principal before first use or filing
b.Approved by the SEC before use
c.Reviewed by the fund's board of directors
d.Approved by the customer in writing
Explanation
A registered principal of the firm must sign off on retail communications before they are used or filed, which places accountability inside the member firm. The SEC does not pre-approve sales material, and fund boards oversee the fund rather than a distributor's advertising. Customers never approve communications directed at them.
Law Reference: FINRA Rule 2210 (Communications with the Public)Practice all 110 questions free — no signup required.
Related questions on this topic
- Under FINRA's communications rules, a written message distributed to more than 25 retail investors within any 30 calendar-day period is classified as:
- A representative emails an identical market update to 18 individual retail clients in one month. This communication is categorized as:
- An institutional communication is one distributed exclusively to:
- How long must a member firm retain records of its communications with the public?
- A retail communication concerning a registered investment company that includes fund performance generally must be filed with FINRA:
- Which practice is permitted when presenting mutual fund performance in a retail communication?
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