The Rule … Supervision - FINRA Rule 2210 FINRA has made it clear that member firms must establish supervisory procedures for the use of social media for business purposes. FINRA Rules Summary 1. The guidance specifically relates to FINRA Rule 2210 – Communications with the Public, and supplements previously issued guidance in Regulatory Notices 10-06 and 11-39, published in 2011. FINRA last issued guidance on this topic in Regulatory Notice 10-06. As part of our Social Media for M&A series, we’ve compiled a summary of FINRA’s Regulatory Notice 10-06. Investors and financial services professionals alike are increasingly using social media for a variety of business purposes. FINRA Rule 2210(c)(6) states that each FINRA firm’s written (including electronic) communications are subject to a periodic spot-check procedure. Prior Approval vs. The Regulatory Notice guides firms on applying communication rules to social media sites which FINRA defines to include blogs and social networking sites like Facebook. 2.FINRA Rule 2210 has replaced NASD Rule 2210 and governs communication with the public, including through social media. Effective February 4, 2013, FINRA adopted amendments to Rule 2210 that codify guidance provided in the Notices with respect to the supervision of interactive social media posts by member firms.1 In December 2014, FINRA published the Retrospective Rule Review Report: The industry body continues to enforce Rule 2210 the same as ever. Prior Approval vs. review process of Rule 2210. False, misleading, promissory, exaggerated or unwarranted statements or … A password protected website limited to institutional investors would be an institutional communication. Rule 2210 governs three categories of “communications” by FINRA member firms: •Institutional communications; •Retail communications; and •Correspondence •The rule sets forth requirements relating to approval, review and recordkeeping of communications; filing requirements and review procedures; and content standards FINRA Issues New Guidance On Communications With The Public, Including Social Media Posted by Securities Attorney Laura Anthony | August 22, 2017 Tags: Finra, FINRA Rule 2210, Regulatory Notice 17-18. The notice reiterates past guidance related to recordkeeping, third-party posts, and hyperlinks to third-party sites and provides … FINRA Rule 2210 has replaced NASD Rule 2210 and governs communication with the public, including through social media. i. Although not strictly applicable to pure RIAs, these rules should be viewed as best practices: - FINRA Rule 2210 and NASD Rule 3010 govern the supervision of a firm's social media communications. In par - ticular, NASD Rule 2210(b)(2) requires the reten-tion of all advertisements, sales literature and inde - In institutional communications relating to structured products, FINRA indicated that its application of the content standards of Rule 2210(d) to backtested data would not be applicable in the same manner as to retail communications. Supervision - FINRA Rule 2210 FINRA has made it clear that member firms must establish supervisory procedures for the use of social media for business purposes. 1. - FINRA Rule 2111 requires that social media communications, if recommending a security, must be considered suitable for the targeted investors; and - Record keeping of all social media … Third-party posts: Regulatory Notice 10-06 stated that, generally, posts by customers or other third parties on social media sites established by the member firm or its personnel do not constitute communications with the public by the firm under FINRA Rule 2210. 54 This paragraph was reproposed as paragraph (a)(19) of Rule 17a-3. The new rules go into effect February 4, 2013. The Notice re-emphasizes the guidance FINRA issued in Regulatory Notice 10-06 (“Notice-10-06”), its first foray into issues relating to use of social media. FINRA has issued a Regulatory Notice 11-39 (the “Notice”), in which it offers additional guidance on the use of social media. Unless the firm or its associated persons have adopted or become entangled with the post, FINRA generally does not treat third-party posts as the firm's or its associated persons' communications under the rule. Note that many of … In April 2017 FINRA issued Regulatory Notice 17-18 providing additional guidance on the use of social media and digital communications by member firms and persons associated with member firms. Therefore, it is the content of the broker’s communication that determines whether it is regulated … Under FINRA Rule 2210(c)(7)(M), such communications are specifically excluded from the FINRA filing requirements. FINRA Rule 2210 requires that firms retain records of communications that relate to their “business as such” under Rule 17a-4 (b) of the Securities Exchange Act of 1934 (SEA). 56 E.g., the record may consist of a principal's signature or initials on the communication, or a signed memo from the principal granting permission for use of the communication. •Yes, but all communications by FINRA member firms are subject to Rule 2210 •Also, the communications may be subject to the: •Research rule, 2241 •Suitability rule, 2111 •Supervision rule, 3110 •Recordkeeping rules, 17a-3 and 17a-4 May a Broker-Dealer Use Twitter or Facebook? 55 See e.g., NASD Rule 2210(b) and NYSE Rule 472. Approval and Recordkeeping (Rule 2210) “The content provisions of FINRA’s communications rules apply to interactive electronic communications that the firm or its personnel send through a social media site. FINRA Rule 2210 Communications with the Public and SEC 206 (4)-1 provides guidance on types of communication and the requirements for review of advertisements, correspondence, and other types to ensure communications are fair and balanced. Firms should be aware that the treatment of communications on social media sites under Rule 2210 depends The new guidance is in the form of FAQ’s, and concentrates on the areas of recordkeeping, third-party posts and hyperlinks to third-party sites. [2] FINRA Rule 2210 has replaced NASD Rule 2210 and governs communication with … FINRA Rule 2210. With the level of data being requested in these “spot checks” using social media could become too costly to support for financial firms. Social Media. Firms must comply with FINRA's communication rule notwithstanding the medium – social media, email, or print. i. However, if the app displays a webpage of the firm in the app, the firm must ensure that the link is readily apparent when the page is displayed through the app. Of interest are the following: A reduction in the number of defined types of communication from six to three; The formal incorporation of social media as a type of retail communication under 2210(c)(7)(m). Social media has become an essential tool for financial advisors (FAs) to connect with prospects and deepen relationships with clients. FINRA last issued guidance on this topic in Regulatory Notice 10-06. As Wall Street moves onto the Internet and into social media, the regulatory maps are filled with empty spaces or outdated references ... FINRA Rule 2210. A4: Regulatory Notice 10-06 addresses the application of NASD Rule 2210 to third-party posts on a social media site established by a firm or its associated persons. Rule 2210 In Regulatory Notice 17-18, the Financial Industry Regulatory Authority, Inc. (“FINRA”) provided additional guidance, in the form of 12 FAQs, on its earlier regulatory notices relating to the use of social media and the application of FINRA Rule 2210 (Communications with the Public). communications. SCOTUS and Social Media: What Employers Can Learn ... the Notice reminds members that private placement retail communications of the member firm are subject to FINRA Rule 2210 …

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