TAKING THE SIE EXAM? KNOW HOW TO AVOID TROUBLE WITH FINRA WHEN COMMUNICATING WITH RETAIL CUSTOMERS

FINRA has strict rules when it comes to communicating with customers. These rules encompass what you must say, what you must not say, and the requirement to keep and maintain records. FINRA's Content Outline for the Securities Industry Essentials exam lists Communications with Customers as an important item in Section 3.2.5.

Bob Eder devotes a whole chapter in his Study for the Securities Industry Essentials (SIE) Exam to the rules on communicating with customers. Here is a sample from Bob Eder's book on "retail communications":

"Principal Must Approve (3.2.5)

Before a registered person may use any retail communication with the public, a registered principal must approve it in writing. The principal must give approval for retail communications before the earlier of either using the material or filing it with FINRA’s Advertising Regulation Department. Given that institutional investors are sophisticated investors, FINRA does not require that a principal give prior approval to communications sent to or intended for them, unless such institutional investors plan to distribute copies to retail clients."

Here is the link to FINRA's Content Outline for the SIE exam. See the references to Communications with Customers in FINRA's Content Outline, Section 3.2.5.

For questions about Bob Eder's Study for the Securities Industry Essentials (SIE) Exam, or questions in general about the SIE exam, or about Communications with Customers, feel free to email Bob Eder at bobeder@bobeder.net.


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