Series 7 practice questionhardCommunications with the Public (Retail and Institutional) — Social Media and Recordkeeping
A registered representative posts investment recommendations on her personal LinkedIn page, which is accessible to the public. She also responds to individual client questions through private LinkedIn messages. Which of the following is TRUE regarding recordkeeping and supervision requirements?
- APrivate messages to clients are not subject to recordkeeping if they are one-on-one.
- BOnly the public posts are considered retail communications and subject to recordkeeping.
- CBoth public posts and private messages are subject to principal review and must be retained as records.✓ Correct answer
- DPrincipal pre-approval is required for both public posts and private messages before they are sent.
Explanation
Why C — Both public posts and private messages are subject to principal review and must be retained as records.
Both public social media posts and private client messages are considered communications with the public (retail and correspondence, respectively) and must be supervised and retained as required by FINRA rules.
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