Series 7 practice questionhardCold Calling Rules and Telemarketing — Recordkeeping and Training
A firm is evaluating its compliance program for telemarketing. Which of the following actions is required by regulation to ensure compliance with cold calling and telemarketing rules?
- AObtaining written consent from all prospects prior to making any solicitation calls
- BRetaining records of all calls made for at least 7 years
- CConducting annual training for personnel engaged in telemarketing activities✓ Correct answer
- DSubmitting monthly telemarketing reports to FINRA
Explanation
Why C — Conducting annual training for personnel engaged in telemarketing activities
FINRA and FCC rules require firms to maintain procedures for compliance, including training personnel engaged in telemarketing. Annual training is required; record retention is not specifically 7 years and pre-call written consent is not a blanket requirement.
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