FINRA RULE ON RETAIL COMMUNICATIONS IS IMPORTANT TO KNOW BEFORE TAKING THE SERIES 6 EXAM

If 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 disclose any other conflict of interest that is actual and material. "Material" means that Susan's conflict concerns more than just owning a few shares. Suppose Suzanne does not know of the conflict at the time that she recommends the security? Then, she does not violate FINRA's rule, unless a reasonable person would have known of the conflict. Suzanne's firm must be diligent in keeping adequate written records of retail communications.

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 Rule 2210 on Retail 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.

Please consider reviewing Bob Eder's Study for the Series 6 Exam on both Amazon and Goodreads. Your review is important!

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