Series 7 Chp 3

Who is responsible for authorizations and disclosures on independent third party research?

The member firm that produces the research

What forms of communication are required to be approved by a principal, but NOT filed with FINRA?

Email recommendations, telemarketing or sales scripts, independently prepared reprints, and ads promoting products

True or False: Firms writing research reports must disclose potential conflicts of interest

True (e.g., firm makes a market in the stock or has had or will have an investment banking relationship with the issuer)

Options-related retail communication must be filed with a regulator at least _____ calendar days prior to use.

Options-related retail communication must be filed with a regulator at least 10 calendar days prior to use.

In a public appearance, what is offered by an analyst?

Recommendations and opinions concerning equity securities

If a BD's investment company communications include self-created rankings, when must they be filed with FINRA?

At least 10 business days prior to use

Define third party research

Research prepared by an affiliate of the member firm where the member has editorial control over content

True or False: Firms may NOT use proprietary names when selling variable contracts.

False. Proprietary names are permitted as long as the policy is described as either variable life or variable annuity.

What is a public appearance?

Participation in a radio or TV interview, seminar forum, or writing an article regarding options

A gathering of fewer than ____ separate investors is not considered a public appearance.

A gathering of fewer than 15 separate investors is not considered a public appearance.

All forms of communication with the public must be kept for _____ years, but easily accessible for the first ___ years.

All forms of communication with the public must be kept for three years, but easily accessible for the first two years.

A public appearance does NOT include large ________ meetings.

A public appearance does NOT include large internal meetings.

True or False: On request, institutional communication may be provided to a retail client.

False. Institutional communication may never be provided to a retail investor.

Define institutional communication.

Written or electronic communication that is distributed or made available only to institutional investors

When must retail communication concerning CMOs be filed with FINRA?

Within 10 business days of first use

Who is responsible for authorizations and disclosures on third party research?

The member firm that distributes the research

List the three forms of communications with the public.

Retail communication, institutional communication, and correspondence

Define the term public appearance.

A speaking engagement with 15 or more persons or with one or more media representatives

For a firm's first year as a FINRA member, when must its broadly disseminated retail communications be filed with FINRA?

10 business days prior to their first use

Define independent third party research.

Research prepared by an independent third party and the member firm has no editorial control over content

Retail communication concerning an investment company must be filed with FINRA within ___________ days of use.

Retail communication concerning an investment company must be filed with FINRA within 10 business days of use.

Under FINRA's communication rules, what is meant by the term broadly disseminated?

That material has been created for generally accessible Web sites, print media, and television or radio

Name two requirements that must be followed with CMO-related retail communication.

CMOs may not be compared to other investments (like CDs), and educational material must be offered

When would a gathering of investors be considered a public appearance?

When there are 15 or more separate investors in attendance

Is correspondence subject to principal approval?

No, but it must be reviewed by the firm.

True or False: Options-related retail communication that is sent to existing clients must be filed with a regulator.

False. Retail communication sent to a person who has received the ODD (e.g. existing customers) need not be filed.

Retail communication generally requires __________ ____________.

Retail communication requires principal preapproval.

What retail communications are required to be filed with FINRA at least 10 business days PRIOR to first use?

Those for investment companies with self-created rankings and security futures

What retail communications are required to be filed with FINRA within 10 days of first use?

Retail communications related to DPPs, CMOs, and ETNs

According to FINRA rules, list some of the persons that are considered institutional investors.

Banks, insurance companies, investment companies, investment advisers, FINRA members and their RRs

For how long must retail communication, institutional communication, and correspondence be maintained?

For three years, but easily accessible for the first two years

When is an analyst considered to be making a public appearance?

When making a recommendation for an equity security in a public or electronic forum, or on radio or TV

What forms of communication are NOT required to be approved by a principal or filed with FINRA?

Retail communications that do not recommend or promote a BD's services, institutional communications, and correspondence

Define correspondence.

Material that a member firm makes available to 25 or fewer retail investors within any 30-calendar-day period.

True or False: Institutional communication must be preapproved by a principal and filed with FINRA.

False. Institutional communication is not required to be preapproved or filed with FINRA.