Series 7 practice questionhardSeminars and Public Appearances — Supervision and Recordkeeping
A representative conducts a public seminar and makes unscripted comments about specific mutual funds. Which of the following best describes the supervision and recordkeeping requirements for the broker-dealer?
- AAll unscripted remarks must be pre-approved by a principal and a full transcript must be kept on file for 3 years.
- BA principal must approve the content of prepared materials, but unscripted remarks are not required to be pre-approved or transcribed; evidence of supervision must be maintained.✓ Correct answer
- CBoth scripted and unscripted remarks must be filed with FINRA and retained for 6 years.
- DOnly scripted remarks must be approved and retained; unscripted remarks and Q&A require no recordkeeping.
Explanation
Why B — A principal must approve the content of prepared materials, but unscripted remarks are not required to be pre-approved or transcribed; evidence of supervision must be maintained.
Prepared materials must be approved by a principal and retained for 3 years; unscripted remarks do not require pre-approval or transcription, but reasonable supervision must be demonstrated.
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