Communications

FINRA Communications with the Public ## Three Categories of Communication FINRA Rule 2210 classifies all firm communications with the public into three categories, each with different approval, recordkeeping, and content requirements. --- ## Retail Communication Retail communication is any written (or electronic) communication distributed or made available to more than 25 retail investors within any 30-calendar-day period. Examples: - Advertisements (newspaper, magazine, online banner ads) - Sales literature sent to customers - Brochures, flyers, prospecting materials - Social media posts published to the general public (Facebook, Twitter, website) - Research reports distributed widely - Broadcast materials (TV, radio scripts) Pre-approval requirement: Retail communications must be reviewed and approved by a qualified principal (supervisor) before use, with limited exceptions. This is the most heavily regulated category. Filing with FINRA: New member firms must file all retail communications with FINRA for review 10 business days before first use for the first year of membership. Certain product types (mutual fund advertisements, variable annuity ads) may require FINRA filing. --- ## Institutional Communication Institutional communication is written (or electronic) communication distributed exclusively to institutional investors -- those with at least $50 million in invested assets or other qualifying characteristics (registered investment advisers, other broker-dealers, banks, insurance companies, government entities). Examples: - Research reports sent only to institutional clients - Emails to institutional trading desks - Materials distributed at institutional investor conferences Approval requirements: Less stringent than retail communication. No pre-approval requirement by rule, BUT the firm's written supervisory procedures (WSPs) must provide for review. Recordkeeping: Three years. --- ## Correspondence Correspondence is any written (or electronic) communication distributed to 25 or fewer retail investors within any 30-calendar-day period. Examples: - Individual emails to…