Series 7 practice questionhardMarketing and Prospecting — Social Media Communications
A broker-dealer's registered rep plans to use both personal and firm-approved social media accounts for prospecting. Which communication scenario requires pre-approval by a principal under FINRA Rule 2210?
- ARetweeting an approved firm research report from the rep’s firm-approved Twitter account
- BSending a private message about a new product to a known client via a personal account
- CCommenting on a prospect’s public LinkedIn post using a firm-approved account and discussing a specific investment product✓ Correct answer
- DPosting a market update on a personal Facebook page with no reference to firm products
Explanation
Why C — Commenting on a prospect’s public LinkedIn post using a firm-approved account and discussing a specific investment product
Interactive communications like commenting publicly about specific investment products through a firm-approved account is considered retail communication and requires prior principal approval; personal accounts without firm references do not, nor do retweets of already approved content.
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