Series 7 practice questionhardCold Calling Rules and Telemarketing — National Do Not Call Registry Exemptions
A registered representative at a broker-dealer is preparing a telemarketing campaign to solicit new business. Which of the following scenarios would permit the representative to call a number listed on the National Do Not Call Registry without violating FINRA and FCC regulations?
- AThe call is made between 9:00 a.m. and 6:00 p.m. in the recipient’s time zone.
- BThe representative identifies themselves and the firm at the beginning of the call.
- CThe representative obtained the phone number from a public directory.
- DThe person being called has made an inquiry about the firm’s services within the past 18 months.✓ Correct answer
Explanation
Why D — The person being called has made an inquiry about the firm’s services within the past 18 months.
A prior inquiry within the past 18 months establishes an 'established business relationship' exception, allowing calls despite Do Not Call listing. Public directories and proper call identification do not exempt the representative from Do Not Call restrictions.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Seeks Business for the Broker-Dealer questions
- A New York-based registered representative plans to cold call prospects in three different states: California (PST),…
- A firm hires several new representatives who will make cold calls. What must the firm ensure regarding these employees…
- A broker-dealer receives a request from a prospect to be added to the firm’s internal Do Not Call (DNC) list. Which of…
- When a broker-dealer makes telemarketing calls, what must be displayed on the recipient’s caller ID?