A broker dealer will not be deemed to have a place of business in a state where it does not maintain an office simply by virtue of the fact that the publicly available website established by the firm or one of its agents is accessible from that state so long as the following conditions are met:

• The website clearly states that the fi rm may only conduct business in states where it is properly registered to do so.

• The website only provides general information about the fi rm and does not provide specific investment advice

.• The firm or its agent may not respond to Internet inquiries with the intent to solicit business without first meeting the registration requirements in the state of the prospective customer.

The  content of any website must be reviewed and approved by a principal prior to its fi rst use and must be filed with FINRA within 10 days of use. If the fi rm or its agent updates the website and the update materially changes the information contained on the website, the updates must be reapproved bya principal and refiled with FINRA. Th e website may use the FINRA logo so long as the use is only to demonstrate that the fi rm is a FINRA member and a hyperlink to the FINRA website is included in close proximity to the logo.

Series 10 Exam Textbook

THE ROLE OF THE PRINCIPAL

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