How to Stay Compliant with FINRA Rule 2210

🛡️ How to Stay Compliant with FINRA Rule 2210
A Guide to Advertising and Communications Compliance for Financial Professionals

If you’re in the business of marketing, advising, or communicating with clients about securities, you need to understand FINRA Rule 2210. This rule governs all communications with the public by broker-dealers and their registered reps—and it’s heavily tested on licensing exams like the Series 7 and Series 24.

📘 What Is FINRA Rule 2210?

FINRA Rule 2210 regulates communications with the public, including:

• Retail communications (e.g., advertisements, social media posts, brochures)
• Correspondence (e.g., individual emails or messages to fewer than 25 clients within 30 days)
• Institutional communications (e.g., materials sent only to qualified institutions)

Its purpose is to ensure all public content is fair, balanced, and not misleading.

✅ Key Compliance Requirements

1. Fair and Balanced Presentation

• No exaggerated claims or misleading statements
• Risks and benefits must be presented equally
• Historical performance must be labeled and cannot imply future results

2. Principal Approval

• Retail communications must be approved by a registered principal prior to first use
• Exceptions include certain templates or pre-approved materials from the firm

3. Filing with FINRA

• Some types of retail communications must be filed with FINRA (e.g., new firm ads, investment company product promotions)
• Must be filed 10 business days prior to first use (pre-use filing) for new firms
• Established firms may use 10 business days post-use filing in some cases

4. Recordkeeping

• Firms must retain copies of all communications for three years
• Records must include the name of the approving principal and the date of first use

5. Disclosures

• Must disclose affiliations, conflicts of interest, and risks
• Testimonials must include disclaimers and can’t be misleading
• Third-party rankings and awards must be explained in context

🚫 Common Violations to Avoid

• Making predictions about returns or guarantees
• Omitting material facts about investments
• Highlighting performance without noting risk
• Using outdated or unapproved templates or presentations
• Failing to disclose fees or conflicts of interest

💡 Best Practices to Stay Compliant

• Always have communications reviewed by a compliance officer or principal
• Keep up to date with FINRA’s advertising regulations and updates
• Use approved templates when possible
• Include risk disclosures in all promotional content
• Train your team regularly on Rule 2210 expectations

🎓 Get Compliant, Stay Ahead

Mastering FINRA Rule 2210 isn’t just about avoiding penalties—it’s about building client trust and protecting your firm. Whether you’re preparing for an exam or managing a team, staying compliant means staying professional.

Access full training and expert exam prep at finra-exam-mastery.com. Our courses help you learn what matters most—so you pass the test and apply the rules with confidence.

Compliance starts with understanding. Master Rule 2210 today.