Unit 27: Communications with the Public

Retail Communication

Made available to more than 25 retail investors in 30-day period - Copy of all communication to FINRA, new member firms have to 10 days before, existing member firms 10 days after

Nonpublic information

Social security number, account balances, transaction history, internet cookies, etc.

Correspondence

25 or fewer retail investors in a 30-day period

Telephone Consumer Protection Act of 1991 (TCPA)

- Administered by Federal Communications Commission (FCC) - Protect Consumers from unwanted telephone solicitations - Inform name, company name and address, between 8 am to 9 pm, cannot call do not call list

Customers Mail

- Up to 3 months (can get an extension) - Inform customer on methods used for them to receive and monitor the account - Verifies at reasonable intervals that the customer's instructions still apply

Business Continuity Plan (BCP)

Deal with possibility of significant business disruption, must address: - Data backup - Communication between firm -> customer - Communication between firm -> employees - Alternate physical location - Communicate with regulators - No case later than 30 days following

Regulation SP

Designed to protect a customers non-public information, must provide them with a description of privacy policies

General Communication rules

Fair dealing, good faith, clear statements, not misleading, fair balance of risk/reward, no omission of fact, no fraud, should not imply past performance repeation

Social Media

Firms required to monitor the business-related social media presence of all reps. Websites/blogs typically need approval from registered principal, sometimes FINRA

Confidentiality of Information

If firm reserves rights tot disclose personal information, they must give you a mean to opt out

Do Not Call List (DNCL)

Must check before a call if they are on either the company list or Nation Do Not Call Registry, do not call it!

Safeguard Requirements

Obligation of financial institutions to safeguard customer information

Institutional Communications

Only to institutional investors - Examples: Member firms, RRs, banks, insurance company, government entity, etc