Series 6 registered representatives must abide by rules relating to sales presentations and materials contained in FINRA Conduct Rules, Securities Act of 1933, Securities Exchange Act of 1934 and the Investment Company Act of 1940.

FINRA Rule 2210 - Communications with the Public
 

  1. Definitions

    For purposes of this Rule and any interpretation thereof, "communications with the public" consist of retail communication and Institutional communication.

    1. Some communication with the public is available to anyone such as an "Advertisement." Any material, other than an independently prepared reprint and institutional sales material, that is published, or used in any electronic or other public media, including any Web site, newspaper, magazine or other periodical, radio, television, telephone or tape recording, videotape display, signs or billboards, motion pictures, or telephone directories (other than routine listings).
       
    2. Other forms of communications are sent to a targeted audience and is  Any written or electronic communication, other than an advertisement, independently prepared reprint, that is generally distributed or made generally available to customers or the public, including circulars, research reports, market letters, performance reports or summaries, form letters, telemarketing scripts, seminar texts, reprints (that are not independently prepared reprints) or excerpts of any other advertisement, sales literature or published article, and press releases concerning a member's products or services.

 

Retail communication is defined as any written communication distributed or made available to 25 or more retail investors in a 30 day period. The communication may be distributed in hard copy or in electronic formats. The definition of a retail investor is any investor who does not meet the definition of an institutional investor.  Retail communications now contain all components of advertising and sales literature. All retail communications must be approved by a registered principal prior to first use.

Intuitional communication is defined as any written communication distributed or made available exclusively to institutional investors. The communication may be distributed in hard copy or in electronic formats. Institutional communications do not have to be approved by a principal prior to first use so long as the member has established policies and procedures regarding the use of institutional communications and has trained its employees on the proper use of institutional communication.



FINRA Conduct Rule 2211

Related Articles
  1. Financial Advisor

    FINRA Rule 2273: Your Recruiting Questions Answered

    An in-depth look at and Q&A on FINRA's new recruiting practices rule, which goes into effect in November.
  2. Financial Advisor

    Asset Manager Ethics: Acting Timely and Accurately

    The client-manager relationship is strengthened by a communication plan that is relevant, accurate and timely. Here's how to create a plan.
  3. Investing

    Global Communications: Exploring Revenue Trends and Fundamentals

    Explore geographical communications sector revenue data to determine which countries have the highest exposure and what factors are driving trends.
  4. Personal Finance

    Consider A Career As A Financial Communications Professional

    Regulators, sales people and clients all look to communications professionals to help them navigate the markets.
  5. Financial Advisor

    Professional Correspondence That Pushes The Envelope

    Learn the difference between correspondence and sales literature, according to NASD rules.
  6. Tech

    Advisors: Are You Managing This Big Compliance Risk?

    A new study finds that supervision of electronic communications at financial advisory firms is falling short, putting them at risk.
  7. Financial Advisor

    Social Media ‘Don’ts’ for Financial Advisors

    Financial advisors should be aware of the many rules and regulations surrounding the use of social media in their practice. Here's a quick guide.
  8. Insights

    FINRA: How It Protects Investors

    Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.
  9. Small Business

    Understanding Marketing

    Marketing includes all of the activities of a company associated with buying and selling a product or service.
  10. Financial Advisor

    Advisors: What to Know Before You Text

    Texting is becoming more popular between clients and financial professionals, but compliance can be tricky. Here's what to know before advisors text.
Frequently Asked Questions
  1. What is the difference between yield and return?

    While both terms are often used to describe the performance of an investment, yield and return are not one and the same ...
  2. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  3. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  4. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
Trading Center