FINRA Series 7Seeks Business for the Broker-DealerHard
A newly registered FINRA member firm, less than one year old, wants to use a new print advertisement targeting retail investors. Under FINRA Rule 2210 filing requirements, this firm must generally:
- AFile the advertisement with FINRA at least 10 business days prior to first use
- BHave no filing obligation since it is a print advertisement, not electronic
- CFile the advertisement with FINRA within 10 business days after first use
- DObtain SEC approval before using the advertisement
Show answer & explanationAnswer & explanation
Correct answer: A. File the advertisement with FINRA at least 10 business days prior to first use
New FINRA member firms are subject to a heightened filing requirement: for the first year of FINRA membership, they must file retail communications that are advertisements with FINRA's Advertising Regulation Department at least 10 business days prior to first use, and FINRA may require modifications.
Why the other options are wrong
- B. Filing requirements apply based on content type, not medium, and new-member rules cover print ads.
- C. Standard members generally file within 10 business days after first use, but new members must file before use.
- D. The SEC does not pre-approve individual firm advertisements; FINRA handles this review.
New Member Firm Filing Requirement
For the first year of FINRA membership, firms must file certain retail communications with FINRA's Advertising Regulation Department at least 10 business days prior to first use.
- Applies specifically to new FINRA member firms during their first year.
- Standard rule for established firms: file within 10 business days after first use for certain categories.
- FINRA may require changes before the material may be used.
Memory trick: New kids on the block file first, wait ten days before they knock.