Marketing and Sales Presentations - FINRA Conduct Rule 2212

General Telemarketing Requirements
No member or person associated with a member shall initiate any telephone solicitation, as defined in paragraph (g)(2) of this rule, to:

Time of Day Restriction
Any residence of a person before the hour of or after (local time at the called party's location), unless


  1. the member has an established business relationship with the person pursuant to paragraph (g)(1)(A)(i),
  2. the member has received that person's prior express invitation or permission, or
  3. the person called is a broker or dealer;

Firm-Specific Do-Not-Call List
Any person that previously has stated that he or she does not wish to receive an outbound telephone call made by or on behalf of the member; or

National Do-Not-Call List
Any person who has registered his or her telephone number on the Federal Trade Commission's national do-not-call registry.

National Do-Not-Call List Exceptions
A member making telephone solicitations will not be liable for violating paragraph (a)(3) if:

  1. Established Business Relationship Exception
    The member has an established business relationship with the recipient of the call. A person's request to be placed on the firm-specific do-not-call list terminates the established business relationship exception to that national do-not-call list provision for that member even if the person continues to do business with the member;

  2. Prior Express Written Consent Exception
    The member has obtained the person's prior express invitation or permission. Such permission must be evidenced by a signed, written agreement between the person and member which states that the person agrees to be contacted by the member and includes the telephone number to which the calls may be placed; or

  3. Personal Relationship Exception
    The associated person making the call has a personal relationship with the recipient of the call.

Safe Harbor Provision
A member or person associated with a member making telephone solicitations will not be liable for violating paragraph (a)(3) if the member or person associated with a member demonstrates that the violation is the result of an error and that as part of the member's routine business practice, it meets the following standards:

  1. Written procedures: The member has established and implemented written procedures to comply with the national do-not-call rules;

  2. Training of personnel: The member has trained its personnel, and any entity assisting in its compliance, in procedures established pursuant to the national do-not-call rules;

  3. Recording: The member has maintained and recorded a list of telephone numbers that it may not contact; and

  4. Accessing the national do-not-call database: The member uses a process to prevent telephone solicitations to any telephone number on any list established pursuant to the do-not-call rules, employing a version of the national do-not-call registry obtained from the administrator of the registry no more than thirty-one (31) days prior to the date any call is made, and maintains records documenting this process.

Wireless Communications
The provisions set forth in this rule are applicable to members telemarketing or making telephone solicitations calls to wireless telephone numbers.

Outsourcing Telemarketing
If a member uses another entity to perform telemarketing services on its behalf, the member remains responsible for ensuring compliance with all provisions contained in this rule.

Securities Act of 1933: RULE 135A


Related Articles
  1. Fundamental Analysis

    FINRA: How It Protects Investors

    Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.
  2. Professionals

    Investigating The Securities Police

    Learn about the history of FINRA and how this organization protects investors.
  3. Trading Strategies

    Benefit From A Winning Investment Club

    Joining an investment club isn't a get-rich-quick scheme, but it can help you learn the ropes or sharpen your investing skills.
  4. Stock Analysis

    3 Important Charts About Costco

    Because a large majority of Costco's (NASDAQ: COST) earnings come from membership subscriptions as opposed to retail sales, it stands to reason that investors should watch the former more closely ...
  5. Economics

    Explaining Economic Integration

    Economic integration reduces or eliminates trade barriers among nations, and coordinates monetary and fiscal policies.
  6. Personal Finance

    Antitrust Defined

    Check out the history and reasons behind antitrust laws, as well as the arguments over them.
  7. Retirement

    Talking To Aging Parents About Money

    Addressing this difficult topic is crucial, but you must approach it with compassion.
  8. Entrepreneurship

    Costly Personality Traits In Financial Planning

    For people to be successful with their finances they must plan effectively. However, sometimes negative personality traits can hold people back.
  9. Economics

    What's Free Enterprise?

    Free enterprise is the economic term used to describe an economy with very little government ownership or regulation. In a free enterprise system, competition and the preferences and choices ...
  10. Credit & Loans

    How To Lend Money To Family And Not Regret It

    It’s hard to refuse a family member’s request for a loan, but be sure to go into such arrangements with your eyes open.
RELATED TERMS
  1. Member Of Household Test

    A test that can be administered to a prospective dependent in ...
  2. Federal Telephone Excise Tax

    The federal telephone excise tax is a statutory federal tax on ...
  3. Mail Or Telephone Order Merchandise ...

    A regulation that controls businesses that sell products over ...
  4. Value Network

    A set of connections between organizations and/or individuals ...
  5. Guarantee Company

    A form of corporation designed to protect members from liability, ...
  6. Research Analyst

    A person who prepares investigative reports on equity securities. ...
RELATED FAQS
  1. Under the Telephone Consumer Act of 1991, a telemarketer must provide which of the ...

    The correct answer is d. All the choices except II are specific requirements of the Act. In addition, the law places time-of-day ... Read Answer >>
  2. How long will my Series 7 license last after my employment has been terminated at ...

    According to the Financial Industry Regulatory Authority (formerly the National Association of Securities Dealers), you have ... Read Answer >>
  3. Who bears the investment risk in 401(k) plans?

    Who actually bears the investment risk in a pension plan depends on the type of pension plan that is employed. In a broad ... Read Answer >>
  4. Customer account records of NFA members must be kept for ...

    Free info on financial certification exams including study guides, exam questions, and much more! Read Answer >>
  5. How do I receive sponsorship from a member firm in order to write a Series 7 exam?

    In most cases, you obtain sponsorship for the Series 7 exam through employment at a FINRA member firm or a self-regulatory ... Read Answer >>
  6. What is a call rule?

    A call rule is a rule used in the futures exchange market. It is a rule that requires the formal bidding amount of a cash ... Read Answer >>
Hot Definitions
  1. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  2. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  3. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  4. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  5. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center