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?
- AAllow use if the app is used only for personal, not business, communications
- BPermit use if the representative manually saves screenshots of conversations
- CAllow use of the app if clients consent to message deletion
- 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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