FINRA Rules to Know for the Series 6 Exam

Passing the Series 6 exam requires a thorough understanding of essential FINRA rules and regulations. Below are the key FINRA rules you should master to ensure success:

📌 FINRA Rule 2111 – Suitability Rule

• Ensures recommendations made to clients are suitable based on:
  • Investment objectives
  • Risk tolerance
  • Financial situation
  • Investment experience

📌 FINRA Rule 2090 – Know Your Customer (KYC)

• Requires representatives to obtain essential facts about each customer:
  • Financial status
  • Investment objectives
  • Other relevant personal details

📌 FINRA Rule 2330 – Variable Annuity Contracts

• Governs sales practices for variable annuities:
  • Suitability assessment
  • Clear disclosure of fees and charges
  • Appropriate supervision of transactions

📌 FINRA Rule 2341 – Investment Company Securities (Sales Charges)

• Regulates sales charges (loads) on mutual funds:
  • Limits maximum sales charges
  • Requires clear disclosure of fees
  • Breakpoint discounts and rights of accumulation

📌 FINRA Rule 2210 – Communications with the Public

• Sets standards for:
  • Advertising and sales literature
  • Correspondence, retail communications, and institutional communications
  • Filing requirements and record-keeping

📌 FINRA Rule 2150 – Improper Use of Customers’ Funds or Securities

• Prohibits representatives from:
  • Borrowing customer funds or securities
  • Commingling assets
  • Misappropriation or misuse of client assets

📌 FINRA Rule 5130 – Restrictions on the Purchase and Sale of Initial Equity Public Offerings

• Limits who can participate in IPOs, particularly restricting industry insiders from purchasing shares in new public offerings.

📌 FINRA Rule 3220 – Influencing or Rewarding Employees of Others

• Restricts gift-giving practices:
  • Gifts limited to $100 per person annually
  • Detailed record-keeping required

📌 FINRA Rule 3240 – Borrowing from or Lending to Customers

• Clearly defines conditions under which representatives may borrow from or lend to customers, typically restricting such transactions to family members or financial institutions.

📌 FINRA Rule 3310 – Anti-Money Laundering (AML) Compliance

• Mandates brokerage firms to:
  • Establish comprehensive AML policies
  • Identify suspicious activities
  • File suspicious activity reports (SARs)

📌 FINRA Rule 4512 – Customer Account Information

• Outlines essential information to maintain in customer accounts:
  • Personal identification data
  • Employment and financial details
  • Investment suitability information

Mastering these FINRA rules is crucial for passing the Series 6 exam.
Review each rule thoroughly, focusing on application scenarios frequently tested in exam questions.