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 Advisors Need to Know About Rule 3210

    Here's what advisors and brokers need to know about FINRA Rule 3210.
  2. Financial Advisor

    Preparing Finances For Deployment: A Guide For Service Members

    Those who follow the instruction in this article can look forward to a homecoming of financial prosperity.
  3. 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.
  4. Personal Finance

    Career Benefits From The CFA Institute

    The CFA Institute provides members with a variety of ongoing career and networking benefits.
  5. Insights

    FINRA: How It Protects Investors

    Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.
  6. Financial Advisor

    How Advisors Can Create Compliance Programs

    Here's how investment advisers can set up a compliance program that adheres to SEC requirements.
  7. Small Business

    Has Nepotism Ever Worked?

    It may very well be that hiring a relative is the right course of action for you. But before you do, carefully consider how hiring family could hurt your business.
  8. Personal Finance

    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 ...
  9. Insurance

    Trends Driving Managed Care M&A

    The uncertainty introduced by legislation has many managed care companies worried about potential financial losses. Companies are turning to M&A to offset their fears.
  10. 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.
Frequently Asked Questions
  1. What's the Best Way to Contact Warren Buffett?

    Learn how to contact Warren Buffett and what kinds of contact is most likely to receive a response from him or from his company, ...
  2. What is the Financial Services Sector?

    A diverse group of companies, beyond banks and credit unions, comprises the financial services sector.
  3. Who are Whole Foods' (WFM) main competitors?

    Whole Foods' main competitors are Sprouts Farmers Markets and Trader Joe's. However, the recent acquisition by Amazon my ...
  4. What caused the Stock Market Crash of 1929 that preceded the Great Depression?

    Find out what led to the stock market crash of 1929, which in turn led to the Great Depression. It sparked a nearly 90% loss ...
Trading Center