Welcome to Advertising, Correspondence, and Social Media, the unit that covers how broker-dealers, agents, and advisers communicate with the public and the rules that govern those communications.
Exam Weight: Part of 20% (12 questions total for Chapter 6)
What You'll Learn
In this unit, you'll cover:
- The Administrator's filing authority: When the state can require pre-use, concurrent, or post-use filing of sales and advertising literature
- Unlawful representations about registration: Why registration never means "approval" and what you cannot say about it
- Performance guarantees: The absolute prohibition on guaranteeing against loss
- Advertising standards: NASAA dishonest-practices rules for deceptive advertising and misleading filings
- Social media and digital communications: The duty to supervise and retain electronic communications and not mislead through adopted third-party content
Why This Matters
Communication rules are among the most heavily tested topics on the Series 63. Roughly one in five exam questions comes from Chapter 6, and this unit covers critical distinctions: when the Administrator can require filing of advertising, what representations about registration are unlawful, and what makes a communication deceptive under NASAA rules.
Let's start with the standards that govern how firms communicate with the public.