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Series 7 practice questionhardSocial Media and Digital Communications — Recordkeeping

A registered representative uses a third-party messaging app to communicate with clients about potential investments. The app automatically deletes messages after 24 hours. Which of the following is the most compliant approach for the broker-dealer regarding recordkeeping obligations under FINRA rules?

  1. AAllow use if the app is used only for personal, not business, communications
  2. BPermit use if the representative manually saves screenshots of conversations
  3. CAllow use of the app if clients consent to message deletion
  4. DProhibit the use of the app entirely unless messages can be retained and supervised✓ Correct answer
Explanation

Why D — Prohibit the use of the app entirely unless messages can be retained and supervised

FINRA requires that all business-related digital communications be retained and supervised. If the app cannot preserve records, its use for business purposes must be prohibited to remain compliant.

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