SERIES 6 CANDIDATES NEED TO KNOW FINRA RULE 3110 THAT REQUIRES REVIEW OF ALL INCOMING AND OUTGOING CORRESPONDENCE. TRY OUR TRUE OR FALSE QUIZ ON CORRESPONDENCE

Here is an important rule to study and know for anyone planning to take the Series 6 Exam.

FINRA Rule 3110 (b) (4) requires supervision of all correspondence both incoming and outgoing. It covers the review of incoming and outgoing written correspondence involving retail customers and internal communications relating to a broker/dealer's investment banking or securities business. 

Note as important that this rule also covers electronic communications, both incoming and outgoing. 

A registered principal of a broker/dealer must review and approve or disapprove all:

(a) incoming and outgoing written (including electronic) correspondence to properly identify and handle in accordance with firm procedures, customer complaints, instructions, funds and securities, and communications that are of a subject matter that require review under FINRA rules and federal securities laws.

(b) internal communications that require review under FINRA rules and federal securities laws.

A registered principal must do the reviewing of correspondence and internal communications and must show his/her approval by signature and date in writing, either electronically or on paper in written form. This rule implies that records be kept of all approval/disapprovals of communications coming in or going out. These records must be easily accessible to FINRA and other securities authorities, and may be kept in either physical or electronic form.

So here's a true-or-false question exercise on FINRA Rule 3310:

1.    a registered principal of ABC Broker/Dealer must approve all outgoing correspondence, but need not approve mail coming in if marked confidential. True or false?

2.    approval by a registered principal of ABC Broker/Dealer need not be in writing, but each disapproval must be recorded in writing and must indicate reasons why disapproved. True or false?

3.    a registered principal of XYZ Broker/Dealer must approve all correspondence coming in or going out, but need not approve communications that are in digital or electronic form. True or false?

4.    a registered principal of XYZ Broker/Dealer need not approve communications coming in or going out provided that these communications concern only investment companies or mutual funds. True or false?

5.   some internal communications between registered representatives of a broker/dealer may need to be approved depending on subject matter if they involve certain FINRA rules or federal securities laws. True or false?

Answer Key: (1) false; (2) false; (3) false; (4) false; (5) true.

Bob Eder discusses Rules on Correspondence in his Study for the Series 6 Exam. 

Here is the link to FINRA's Content Outline for the Series 6 Exam. See the references to Correspondence with the Public 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 Correspondence with the Public, 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.