FINRA Series 6 Investment Company and Variable Contracts Products Representative ExaminationRegulatory Fundamentals and General Product KnowledgeMedium
A registered representative is preparing to distribute marketing materials for a new mutual fund to potential investors. According to FINRA rules, which of the following statements regarding the filing and approval of these materials is most accurate?
- AAll mutual fund communications with the public must be filed with FINRA at least 10 business days prior to first use.
- BOnly mutual fund advertisements that include performance data must be filed with FINRA for approval.
- CNew mutual fund communications with the public must be filed with FINRA within 10 business days of first use.
- DCommunications for an existing mutual fund that have not changed significantly do not require filing with FINRA.
Show answer & explanationAnswer & explanation
Correct answer: C. New mutual fund communications with the public must be filed with FINRA within 10 business days of first use.
FINRA Rule 2210 generally requires that new member firms and those with disciplinary history file all retail communications 10 business days prior to first use. However, for most established firms, new mutual fund communications with the public (retail communications) must be filed with FINRA within 10 business days of first use, not prior.
Why the other options are wrong
- A. This is incorrect; filing is generally *within* 10 business days of first use for established firms, or *prior* for new firms or those with disciplinary history.
- B. This is incorrect; filing requirements apply broadly to retail communications, not just those with performance data.
- D. This is incorrect; even existing communications are subject to review and filing, especially if they are new or significantly modified.
FINRA Rule 2210 Filing Requirements
Rules governing the filing of retail communications with FINRA, including timelines for submission and exemptions.
- Generally, retail communications must be filed within 10 business days of first use.
- New member firms or those with disciplinary history must file 10 business days *prior* to first use.
- Some communications, like prospectuses, are exempt from filing.
Memory trick: New firm, new rules; old firm, old rules, but still file!