Series 7 practice questionmediumCommunications with the Public (Retail and Institutional) — Approval Requirements
A registered representative wants to send a mutual fund research report to 30 retail clients. What is required before this communication can be distributed?
- AApproval only if the report includes projections
- BNo approval if the information is factual
- CFiling the report with FINRA before use
- DPrincipal approval prior to use✓ Correct answer
Explanation
Why D — Principal approval prior to use
Principal approval is required before distributing any retail communication to more than 25 retail investors within a 30-day period.
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