Series 7 practice questionmediumMarketing and Prospecting — Prospecting List Sources
A representative obtains a list of potential prospects from a third-party data vendor. Which regulatory requirement must be met before contacting these individuals?
- AFINRA approval is required before using third-party lists.
- BProspects must be pre-qualified for accredited investor status.
- CThe list must be checked against the firm's and national do-not-call lists.✓ Correct answer
- DAll individuals must be current clients of the firm.
Explanation
Why C — The list must be checked against the firm's and national do-not-call lists.
Before cold calling, the representative must ensure the prospects are not on the firm’s or national do-not-call lists to comply with telemarketing rules.
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