SERIES 6 CANDIDATES, KNOW DIFFERENCES BETWEEN CORRESPONDENCE, RETAIL COMMUNICATIONS, AND INSTITUTIONAL COMMUNICATIONS

Planning to sit for the Series 6 Exam in the future? If so, make sure that you can explain and recognize the FINRA rule differences between correspondence, retail communications, and institutional correspondences. How do I know that questions on these topics may show up on your Series 6 Exam? I know this because FINRA publishes a Series 6 Exam Content Outline, and Section 1.1 specifically states that Series 6 candidates should know standards and types of various Public Communications. 

Bob Eder in his Study for the Series 6 Exam presents a detailed discussion of Public Communications, including standards and required approvals. Here is a sample of Bob Eder's treatment:

Correspondence (1.1)

FINRA defines "correspondence" as any written or electronic communication that a brokerage firm or representative sends, distributes, or makes available to 25 or fewer retail investors, within any 30-calendar-day period. If a representative sends material to more than 25 retail customers within any 30-day period, then it would be "retail communications." However, FINRA does not include materials sent to 25 or less retail customers within a 30-day period as "retail communications."

Principal Must Review Correspondence (1.1)

Even though correspondence related to the securities business need not be sent to FINRA's Advertising Regulation Department, it still is subject to review by a registered principal of the firm to make sure it does not violate FINRA rules regarding exaggerated claims, false statements, inappropriate comments. This rule also applies to internal communications of the FINRA member firm. Review of correspondence applies to both incoming and outgoing correspondence. Especially important is discovering customer complaints and actions of representatives that entail serious violations of SEC and FINRA rules. The principal who is designated to review correspondence must give evidence of the review by written or electronic records made contemporaneously (i.e., at the time that the principal made the review), and this must include the principal's signature and the date.

Here is the link to FINRA's Content Outline for the Series 6 Exam. 

See the references to Public Communications in FINRA's Series 6 Content Outline, Section 1.1.

Study for the Series 6 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's Study for the Series 6 Exam on Amazon.

See Bob Eder's Author Page on Amazon.com.

For questions about Bob Eder's Study for the Series 6 Exam, or questions in general about the Series 6 Exam, or about Public Communications, simply email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. 

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