Customer Communications

morningstar, lipper

2 popular ranking entities

contacting an RR

CMO communications: ads must suggest ____ before investing

retail investors

CMO communications: educational material is only required to be sent to ____

full name

CMO communications: must include the ____ of "collateralized mortgage obligation," not just CMO

no other investment

CMO communications: which investment can a CMO be compared to?

rule 482

FINRA rule covering summary prospectuses

supplemental sales literature

Investment Company Advertising/Sales Literature: accompanied by a prospectus, performance information is included, used after effective date

generic advertising

Investment Company Advertising/Sales Literature: not accompanied by a prospectus, no performance information, used at any time

tombstone ad

Investment Company Advertising/Sales Literature: not accompanied by a prospectus, no performance information, used during waiting period

summary prospectus

Investment Company Advertising/Sales Literature: not accompanied by a prospectus, performance information is included, used during waiting period

yes

New Issue Advertisements: can a syndicate show the initial price and yield if the price, yield, or maturity have changed?

date of execution

New Issue Advertisements: date of sale for negotiated sales

date that bids were sent

New Issue Advertisements: date of sale of competitive sales

date of sale

New Issue Advertisements: if the syndicate chooses to show the initial price and yield, even after a change, what must be contained in the communication?

no restrictions

Quiet Period: distribution participant for a follow-on offering

10 calendar days

Quiet Period: distribution participant for an IPO

initiate, continue

Quiet Period: distribution participants may not ____ coverage prior to the effective date, but may ____ coverage prior to the effective date

3 calendar days

Quiet Period: managing underwriter for a follow-on offering

10 calendar days

Quiet Period: managing underwriter for an IPO

no restrictions

Quiet Period: non-distribution participant for a follow-on offering

no restrictions

Quiet Period: non-distribution participant for an IPO

30 day yield

SEC standard for fund yields other than money market funds

7 day yield

SEC standard for money market fund yields

generic

____ fund advertising cannot refer to a specific fund by name

3 years

all communications are required to be kept on file for ___

written, principal

all municipal advertisements must receive ____ approval from the ____

application to invest, prospectus

an ____ cannot be included in mutual fund advertising, instead a ____ must be sent first

ranking entity

an organization, independent from the investment company, that has been hired to provide a ranking symbol to a bond fund that assesses its volatility

1, 5, or 10 years

average annual yields for municipal fund securities must be presented for ____

economic and market conditions

bond fund volatility ranking: measures how sensitive a bond fund's NAV is to changes in ____

supplemental sales literature

bond fund volatility rankings can only be included in what kind of advertisement?

yes

can a client make purchases based on a summary prospectus?

4 years

copies of advertisements must be maintained for ____ from last use

approved by a principal, filed with FINRA

for documents and communications, the requirement to be ____ and the requirement to be ____ go hand-in-hand

confirmation

if a client makes a purchase based on a summary prospectus, a complete prospectus must be sent with the

considerate

in addition to being fair and balance, communications are required to be ____ of the audience to which it is directed

creates, distributes

independent third party research: normal disclosure rules apply to the firm that ____ the report, but NOT the firm that ____ the report

form letter

municipal communications: any written letter or email distributed to 25 or more persons within a 90 day period

official statements

municipal communications: general provisions do not apply to ____, but they DO apply to abstracts of them

60 days

options communications: annualized returns cannot be based on less than ____ of performance

12 month

options communications: historical performance can cover no less than the most recent ____ period

at account opening

options communications: the options disclosure document must be delivered to the customer ____

correspondence

real-time communication through social media is considered ____

BD

retail communications and correspondence must disclose the name of the ____

recruitment advertising

retail communications are not required to be approved if they make no recommendations or promotions. An example would be ____

they make no recommendations or promotions

retail communications are not required to be approved if:

investment companies with self-created rankings, futures, bond mutual funds with volatility ratings

retail communications that are required to be filed with FINRA 10 business days PRIOR to first use

anything other than: investment companies with self-created rankings, futures, bond mutual funds with volatility rankings

retail communications that are required to be filed with FINRA WITHIN 10 business days of first use

retail communications, for internal use only

scripted public appearances are considered ____, while talking points for clients would be considered ____

quiet period

set amount of time when a company's management and marketing teams cannot share opinions or additional information about the firm

non-standardized performance information

the font size of fee disclosures and performance information must be at least as large as that which is used for ____

investment companies, the SEC

the summary prospectus is filed by ____ with ____

created or distributes

third party research: normal disclosure rules apply to any firm that ____ the report

12%, 0%

variable products: a max hypothetical rate of return of ___ is permitted, as long as ____ is also provided

current market conditions

variable products: hypothetical rates of return must be consistent with ____

maximum

variable products: in calculating hypothetical rates of return, remember to use the ____ expenses and sales charges

supplemental sales literature

what must always be accompanied by a prospectus?

nowhere

where can member firms place the FINRA logo on their website?

all expenses

which expenses must be disclosed with variable annuities?

both

which is considered an insurance product: variable life insurance, or variable annuities?

insurance company

who guarantees the features of a variable product: the insurance company, or the selling group?