Series 7 Correspondence Information

Here is some great information on correspondence for the Series 7 exam, and Series 24 exam

Correspondence

Correspondence consists of electronic and written communications between the member and customers or potential customers. With the increase in acceptance of email, instant messaging and chat rooms as business communication, it would be impractical for a member to review all correspond­ence between the member and the public. The member instead may set up procedures to review a sample of all correspondence, both electronic and hard copy. If the member reviews only a sample of the correspondence, the member must train their associated people on their firm’s procedures relating to correspondence and must document the training and ensure the procedures are followed. Even though the member is not required to review all correspondence, the member must still retain all correspondence. The member should, where practical, review all incoming hard copy correspondence. Letters received by the firm could contain cash, check, securities, or complaints. The following electronic communications between the member and the public are considered to be sales literature:

Email to 25 or more potential customers
Instant messaging to 25 or more potential customers

The following electronic communications between the member and the public is considered to be correspondence:

Email to less than 25 potential customers within 30 days
Email to an unlimited number of existing customers

The various other types of electronic interaction are categorized as follows:

The company’s website is considered advertising
Password protected areas of the company’s website are considered to be sales literature
Chat room discussions are considered public appearances

Registered representatives who participate in chat room discussions must adhere to the same conduct rules as if they were speaking at a public appearance. These conduct rules are in place for representatives who participate in chat room discussions from the office or from their home.

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