Series 7 practice questionhardSeminars and Public Appearances — FINRA Filing and Approval Requirements
A registered representative is planning to host a seminar where options strategies will be discussed in detail and written materials will be distributed to 60 retail investors. Which of the following is required regarding FINRA filing and approval of the seminar materials?
- AThe materials must be approved by a principal within 10 business days after first use, but do not require FINRA filing.
- BThe materials only require principal approval but do not need to be filed with FINRA since the audience is less than 100 people.
- CThe materials require no principal approval or FINRA filing if handed out only at the event.
- DThe materials must be approved by a principal prior to use and filed with FINRA at least 10 business days prior to first use.✓ Correct answer
Explanation
Why D — The materials must be approved by a principal prior to use and filed with FINRA at least 10 business days prior to first use.
Written communications about options to more than 25 retail investors within a 30-day period qualify as retail communications, requiring principal approval and must be filed with FINRA at least 10 business days prior to first use.
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 representative conducts a public seminar and makes unscripted comments about specific mutual funds. Which of the…
- At a seminar, a representative displays a chart showing 10 years of S&P 500 performance to illustrate market cycles.…
- During a seminar, a registered representative asks a satisfied client to give a testimonial about the firm’s services.…
- A registered representative invites a guest speaker, who is not registered, to discuss tax strategies at a seminar.…