Telemarketing

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:

  1. Time of Day Restriction
    Any residence of a person before the hour of 8am or after 9pm (local time at the called party's location), unless one of the following is true:
    • The member has an established business relationship with the person
    • The member has received that person's prior express invitation or permission
    • The person called is a broker or dealer

  2. Firm-Specific Do-Not-Call List
    This includes 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.

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

Exemptions
A member making telephone solicitations will not be liable for violating the rule regarding the national do-not-call list under any of the following situations:

  1. Established Business Relationship Exception
    The member has an established business relationship with the recipient of the call. However, a person's request to be placed on the firm-specific do-not-call list terminates the established business relationship exception to the 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.

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


Exam Tips and Tricks
The exceptions to the national do-not-call list are likely to be tested. But watch for the firm-specific exception for established clients.


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:

  • The member has an established business relationship with the person
  • The member has received that person's prior express invitation or permission
  • The person called is a broker or dealer

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.



Introduction

Related Articles
  1. Financial Advisor

    What Financial Advisors and Brokers Need to Know About Rule 407

    Learn about NYSE Rule 407 and how it may impact you as a financial advisor or investment broker. What you don't know about this regulation can hurt you.
  2. Investing

    The LLC Operating Agreement Template, And Why You Need It

    For some business owners, creating an LLC offers the best of both worlds. But your state's rules might not suit your needs. Hence the Operation Agreement.
  3. Investing

    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. Investing

    Explaining Economic Integration

    Economic integration reduces or eliminates trade barriers among nations, and coordinates monetary and fiscal policies.
  5. Taxes

    Tax Variations Of The HEART Act

    The HEART Act is designed to allow service members and reservists make a smooth financial transition into active duty and back into civilian life.
  6. Investing

    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 ...
  7. Small Business

    Antitrust Defined

    Check out the history and reasons behind antitrust laws, as well as the arguments over them.
  8. Financial Advisor

    Finra Releases Q&A Guidance on Recruiting

    FINRA has issued further guidance on its recruiting practices rule, which includes clarifying the definition of a former customer.
  9. Managing Wealth

    Talking To Aging Parents About Money

    Addressing this difficult topic is crucial, but you must approach it with compassion.
  10. Investing

    Could 2016 Be the Year the EU Collapses?

    The EU is facing its strongest test since the potential "Grexit." Are pressures now severe enough to break it up?
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center