A registered representative gives an unscripted presentation at a public investment seminar, discussing general market conditions and taking audience questions without a written script or slide deck. Under FINRA Rule 2210, this presentation is classified as:
- ACorrespondence requiring supervisory review only if attendance exceeds 25 people
- BA public appearance, which is excluded from the definition of a communication and generally does not require prior principal approval
- CRetail communication requiring principal approval before the seminar
- DAn institutional communication because attendees are treated as sophisticated investors
Show answer & explanationAnswer & explanation
Correct answer: B. A public appearance, which is excluded from the definition of a communication and generally does not require prior principal approval
Rule 2210 defines a public appearance as participation in a seminar, forum, radio/television interview, or other interactive electronic forum. Public appearances are excluded from the definition of "communication" and do not require prior principal approval, although any related handouts or scripts may separately be subject to the applicable communication rules.
Why the other options are wrong
- A. Correspondence classification is based on written communications to 25 or fewer investors, not live seminars.
- C. Retail communication rules apply to written/electronic pieces, not unscripted live presentations.
- D. Institutional communication classification depends on audience type being institutional investors, not seminar attendees generally.
Public Appearance (Rule 2210)
Includes participation in seminars, forums, media interviews, and interactive electronic forums; excluded from the definition of "communication" and generally exempt from prior principal approval.
- Covers live, unscripted interactive presentations.
- Handouts/scripts used at seminars may still be subject to separate content rules.
- Firms should still train and supervise reps making public appearances.
Memory trick: Live and unscripted? That's a public appearance, no principal gatekeeping needed.