FINRA Series 6 Investment Company and Variable Contracts Products Representative ExaminationProfessional Conduct and Ethical ConsiderationsMedium
A registered representative (RR) is developing a new social media page to engage with clients and prospects. The RR plans to post articles about market trends, educational content, and general investment strategies. According to FINRA rules, what is a key requirement for this social media content before it is published?
- AIt can be posted freely, as long as it does not promote specific securities.
- BIt must be pre-approved by the firm's compliance department.
- CIt must be reviewed and approved by FINRA prior to use.
- DIt only requires supervisory review if it includes client testimonials.
Show answer & explanationAnswer & explanation
Correct answer: B. It must be pre-approved by the firm's compliance department.
FINRA Rule 2210 (Communications with the Public) generally requires that all communications used by an RR that are intended for the public (including social media content) must be reviewed and approved by a qualified principal of the firm before first use. This ensures compliance with regulatory standards for accuracy, fairness, and balance.
Why the other options are wrong
- A. Even general educational content and market trends must adhere to firm and FINRA rules and typically require pre-approval.
- C. FINRA does not pre-approve most firm communications; the firm's principal does.
- D. Client testimonials are generally prohibited on social media for RRs, and even if permitted in limited contexts, all public communications require pre-approval.
Social Media Content Pre-Approval
FINRA Rule 2210 requires that all public communications by a registered representative, including static content on social media, must be reviewed and approved by a qualified principal of the firm before first use.
- Applies to all public-facing content.
- Ensures compliance, fairness, and accuracy.
- Distinguishes from interactive content, which may have different rules.
Memory trick: Social posts? Firm's principal must approve, or else you'll prove a goof.