Study for the Series 6 Exam

Series 6 Exam candidates should expect  that several Series 6 Exam questions deal with FINRA and SEC rules on proper communications with retail customers and keeping written records of such communications. The  Record-Keeping Rules state that a brokerage firm has an obligation to keep written records of advertising material sent to customers by its registered reps. Such records must be in writing or electronic form, and be signed and dated by a registered principal of the broker/dealer.  But many reps do not know that the brokerage firm is also bound to keep records of all communications, even those that are sent or received through social media, such as Facebook, Twitter, et al. Yes, the Record-Keeping Rule covers communications with customers through social media, e-mail, digital messaging, and all other website and internet platforms. (These communications are known as "off channel.") That this is an important topic on the Series 6 Exam is underscored by an SEC Press Relea

I f you plan to sit for the Series 6 Exam, make sure that you thoroughly study and know the provisions of FINRA's rule on Retail Communications, Rule 2210. It is not necessary to identify Rule 2210 by its number, but it is necessary to know its major rule provisions.Why is Rule 2210 so important for the exam? The reason is that FINRA tells us that it is important in its Series 6 Content Outline in Section 1.1. Bob Eder devotes Chapter One of his Study for the Series 6 Exam to Rule 2210 and Retail Communications. Here is a sample of Bob Eder's treatment: EXAMPLE If Suzanne, a representative, recommends shares of a mutual fund, such as the XYZ Fund, in a public talk, she must have a reasonable basis for her recommendation; and Suzanne must disclose if she has a financial interest in XYZ Fund that she endorses. If she does have a financial interest, e.g., owning 500 shares of XYZ Fund, Suzanne must disclose and describe this interest. Furthermore, Suzanne must dis