SIE: Communications With The Public

Communications with the Public

Almost all communications with the public are strictly regulated by FINRA, requiring that a registered principal attest to the truthfulness of its content and that the member firm retain copies both in its own records and with FINRA’s Advertising Regulation Department.

FINRA organizes communications with the public into three broad categories. Knowing these categories will help you to remember the rules related to each.

1. 1. Institutional communication—written communications, including electronic communications, that will be distributed or made available only to institutional investors. This definition does not include internal memos, but firms need to continue to supervise internal communications. The definition also does not include communications that may eventually fall into the hands of retail investors. A firm is advised to use legends warning clients that the communication is not intended for retail investors.
2. 2. Retail communication—written communications, including electronic communications, that will be distributed or made available to more than 25 retail investors within any 30-calendar-day period. Retail investor is defined as any person other than an in