Unit 27: Communications with the Public

Regulation S-P requires that financial institutions provide information to customers and consumers concerning

A) the categories of nonpublic personal information that a broker-dealer, fund, or registered investment adviser may collect and disclose. B) a consumer's right to opt out of the disclosure of nonpublic personal information to nonaffiliated third parties. C) their policies on the protection of nonpublic personal information. D) all of these.

Holding customer mail is consistent with your broker-dealer's in-house rules. Considering this, if requested to do so, the broker-dealer must

verify at reasonable intervals that the customer's instructions still apply.

Which broker-dealers or investment advisers are obligated to maintain a business continuity plan?

All broker-dealers and investment advisers

All of the following are provisions of Regulation S-P except

the firm must give the customer the opportunity to opt out semiannually.

The TCPA only restricts solicitations that are delivered via

the telephone lines.

Calls made regarding of all of the following under the Telephone Consumer Protection Act of 1991 (TCPA) are exempt except

those made that are unsolicited for the purpose of prospecting new clients.

All of the following are provisions of FINRA's rules for holding mail for customers except

the firm must hold the customer's mail for up to three months if it receives notice in writing that it is for security reasons.

All member firm communications are held to certain standards by Financial Industry Regulatory Authority (FINRA). All of the following characterize those standards except

the nature of the audience (age, investment experience) need not be a consideration at an open seminar.

During a discussion with a customer about a potential investment opportunity involving securities, standing alone, all of the following would likely be permissible except

the registered representative points out only that a tech firm has a brilliant product idea and the CEO has advanced degrees in science.

Financial Industry Regulatory Authority (FINRA) and the other self-regulatory organization (SRO)s place extreme importance on knowing your customer. That involves knowing both financial and non- financial considerations. All of the following are nonfinancial considerations except

the salary paid to the client by her employer.

The TCPA requires that businesses that solicit by phone maintain a do-not-call registry that must be republished every

30 days.

Solicitations may only occur between

8:00 am and 9:00 pm the customers time zone.

FINRA rule 2210 on communications with the public would apply for all of the following except

A Voicemail left for a customer

Regulation S-P defines consumers and customers correctly in which of these statements?

A customer has an ongoing relationship with the company. A consumer performs a onetime transaction with the company.

Which of the following scenarios would not violate general standards regarding member firm communications?

A recruitment advertisement promises substantial training to be delivered to incoming employees.

Which of the following is a classification of communications with the public?

Correspondence

A customer has requested that your broker-dealer hold mail for them while they are traveling. Which of the following is true?

Firms may choose or choose not to hold customer mail when requested to

In an effort to safeguard customer information which regulation specifies securing desktop and laptop computers and encrypting email?

Regulation S-P

The regulation enacted by the Securities and Exchange Commission (SEC) to protect the privacy of customer information is known as

Regulation S-P.

A client phones his registered representative in September and informs the representative that he will be studying abroad in Europe for the remainder of the year. The client wants the firm to hold his mail. What action should the representative take?

The representative must instruct the client that the request must be made in writing.

There are rules regarding customer statements. All of the following statements reflect those rules except

activity limited to only stock splits or stock dividends do not require monthly statements be sent.

All FINRA firms must have business continuity plans. Those plans must include all of the following except

alternate physical locations at least 100 miles apart in case of a disaster.

Communicating the information in a firm's BCP to customers occurs at all of the following times except

annually.

The category of correspondence, one of the three identified as being communications with the public, is defined as

any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period.

The Telephone Consumer Protection Act of 1991 exempts all of these entities except

booking services for commercial enterprises.

Under regulation S-P, nonpublic personal information would not include a customer's

home address

The Telephone Consumer Protection Act mandates that unsolicited sales calls must occur

no earlier than 8:00 am and no later than 9:00 pm recipient's time.

An institutional customer has requested that you provide an article that they can use in their quarterly retail client newsletter. Rule 2210 states that you must

obtain preapproval from a principal and file a copy with FINRA.

All of the following are classifications of communications with the public except

sales literature

All of the following are classifications of communication under Rule 2210 except

wholesale.

All of the following would be acceptable methods for opting out of the customer allowing the broker-dealer to share his nonpublic personal information except

write a letter.

All of the following would be acceptable methods for the customer opting out of allowing the broker-dealer to share their nonpublic personal information except

writing a letter.

An individual is solicited with a cold call made by a registered representative. He tells the representative he is not interested in this investment or in making any future investments. Which of the following actions is required by the Telephone Consumer Protection Act of 1991 (TCPA)?

No calls may be made to the prospect by anyone at the firm.

Financial Industry Regulatory Authority (FINRA) normally requires that member firms provide at least how many names as emergency contacts as a part of their business continuity plan (BCP)?

Two

All of these are true regarding correspondence except correspondence

must be filed with FINRA within 10 business days.

All of the following are exempt from the do not call provisions of the Telephone Consumer Protection Act except

calls made to make the customer aware of new products that are available to the customer.

In accordance with the terms of the Telephone Consumer Protection Act of 1991 (TCPA), all of the following statements are true except

cold calls may be made between 8:00 am and 9:00 pm in the time zone from which the representative is making the call.

All of the following would be requirements of the Telephone Consumer Protection Act (TCPA) of 1991 except

contact each and ask if they wish to be put on the do-not-call list.

Caleb McDaniels receives an email from his client, Shelby Bogdin, requesting the year-to-date performance on several of her mutual funds. Caleb immediately looks up the performance and emails her a response. This type of communication would be classified as under Financial Industry Regulatory Authority (FINRA) rules as

correspondence

Under the Telephone Consumer Protection Act of 1991 (TCPA), administered by the Federal Communications Commission (FCC), a telephone solicitation is defined as a telephone call

initiated for the purpose of encouraging the purchase of, or investment in property, goods, or services.

Which of the following is not a category of communications with the public designated by Financial Industry Regulatory Authority (FINRA)?

market letters

Of the following, which would not be considered institutional communications with the public?

An internal memo promoting a new product that will be offered to your firm's institutional customers only

There are two types of do not call list. What are they and how long do names stay on the list?

Broker-dealer list and a national list; names remain on list until removed by customer

Jackson Raleigh, a registered representative in Memphis, TN, has a client who is a pension fund manager for the Tiger Pension Fund. Raleigh creates several flyers of informational literature about the funds available in the Tiger Pension Fund and emails them to the fund manager so that the fund manager can prints copies of the flyers and make them available to the participants in the pension fund. FINRA would classify these flyers as

retail communications.

Lilly Bogdin, a registered representative in the Norristown, PA, branch, creates a flyer for an upcoming seminar that she emails to all of her 150 clients. FINRA would classify this type of communications with the public as

retail communications.

Lilly Bordan, a registered representative in the Norristown, PA branch, creates a flyer for an upcoming seminar that she emails to all of her 150 clients. Financial Industry Regulatory Authority (FINRA) would classify this type of communications with the public as

retail communications.

When making unsolicited cold calls to prospects, a registered representative must disclose all of the following to the individual called except

the address of any securities issuer mentioned during the call.

For institutional communication the rule allows for either preapproval or review. However, if the firm allows the communication to go out before approval by a principal then

the associate must have training on these communications.