Introduction

Welcome to Public Communications and Advertising: the rules that govern every piece of written, electronic, and spoken communication a broker-dealer uses to reach customers and the public.

Exam Weight: Part of 7% (~9 questions across Function 1)

What You'll Learn

In this unit, you'll cover:

• Communication Categories: The three types of written communication under FINRA Rule 2210 (retail, institutional, correspondence) and how public appearances differ
• Standards and Approvals: Content standards that apply to all communications, plus principal approval and FINRA filing requirements
• Seminars and Group Forums: How written materials at public events trigger retail communication rules
• Investment Company and Variable Contract Disclosures: SEC Rules 156, 482, and 498 for mutual funds, plus FINRA Rule 2211 for variable annuities and life insurance
• Options Communications: Options Disclosure Document (ODD) delivery requirements and pre-ODD vs. post-ODD communication rules
• Municipal Securities, Government Securities, and CMOs: Municipal Securities Rulemaking Board (MSRB) Rule G-21 advertising standards and Collateralized Mortgage Obligation (CMO) educational material requirements
• Research Reports: Quiet periods for IPOs and secondary offerings, third-party research distribution, and selective distribution prohibitions

Why This Matters

The Series 7 exam tests your ability to distinguish between communication types, know which require pre-approval, and identify product-specific disclosure requirements. These rules are the foundation of how broker-dealers seek business. Get them wrong in practice and you face regulatory action; get them wrong on the exam and you lose easy points.

Let's start with the three categories of communication under FINRA Rule 2210.