3.3.1 Communication with the Public
Almost all communications with the public are strictly regulated by FINRA. FINRA requires that a registered principal review communication content and that the member firm retain copies in its own records, and sometimes with FINRA’s Advertising Regulation Department. FINRA rules provide standards for the content, approval, recordkeeping, and filing of communications with FINRA.
FINRA classifies public communications into the following general categories:
- • Correspondence—any written letter or electronic mail message that is distributed or made available to 25 retail customers or fewer within a 30-day calendar period.
- • Retail communication—any written or electronic communication that is distributed or made available to more than 25 retail customers over a 30-day period. These include circulars, research reports, telemarketing scripts, seminar texts, and form letters.
- • Institutional communication—any written (including electronic) communication that is distributed or made available only to institutional investors. This does not include a member’s internal communications.
A registered principal must approve any retail communication that is considered sales literature, general advertising, or which includes a reprint from an independent third-party source. The approval must contain the principal's signature and the date it was granted. The communication must be approved before it is used or before it is filed with FINRA, whichever is earlier. Such approval will not be required of retail communications that:
- • Are posted on an online interactive electronic forum
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