Quick Answer
Written or electronic material falls into three categories by audience: correspondence, retail communication, and institutional communication. Correspondence reaches a small number of retail investors, and retail communication reaches a larger retail audience. Institutional communication goes only to institutional investors and excludes the firm's internal communications. A registered principal generally approves retail communication before use.
Communication is one part of a relationship or dealing. It is distinct from the information that might be discussed through that method.
Is the Message Correspondence, Retail, or Institutional Communication?
- Methods of communication: The methods a firm uses when dealing with customers, vendors, and associated persons of the firm.
- Correspondence: Written or electronic communication distributed or made available to a small number of retail investors.
- Retail communication: Written or electronic communication distributed or made available to a larger number of retail investors.
- Institutional communication: Written or electronic communication made available only to institutional investors, excluding the firm's internal communications.
Exam Tip: Gotchas
Methods of communication and nonpublic personal information are separate concepts. A question can test the communication method even when information privacy is not the issue.
What Should You Check on Exam Day?
- For written or electronic material, identify the audience to determine its communication category.
- Apply the correct approval or review control to the communication category.
- Keep the communication method separate from any nonpublic-information issue.