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13 September 2026
Types of Communications: Correspondence, Retail Communications, Institutional Communications
A registered representative, over a 20-day period, sends two separate electronic messages to different groups of retail investors. The first message, promoting a new variable annuity product, is sent to 15 existing retail clients. Ten days later, a second message, containing substantially similar product information and benefits, is sent to 12 additional prospective retail clients. How should the broker-dealer categorize these communications for regulatory supervision purposes?
A.Retail communication, subject to principal approval prior to use.
B.Correspondence, requiring principal review and approval after use.
C.Institutional communication, exempt from principal pre-approval.
D.Public appearance, requiring no specific approval but subject to firm policies.
Rationale:
FINRA Rule 2210 defines communications based on the audience and the number of recipients within a 30-calendar-day period. Retail communication is any written or electronic communication distributed or made available to more than 25 retail investors within any 30-calendar-day period. In this scenario, the registered representative sent communications to a total of 15 + 12 = 27 retail investors within a 20-day period, which falls within the 30-day window. Since 27 is greater than 25, these communications are classified as retail communications. Retail communications generally require principal approval prior to use. The option suggesting correspondence is incorrect because while each individual send (15 and 12 recipients) would be classified as correspondence on its own, the cumulative total of substantially similar communications to retail investors within the 30-day period exceeds 25, triggering the retail communication classification. The option identifying institutional communication is incorrect because the recipients are retail investors, not institutional investors. The option suggesting public appearance is incorrect because the scenario describes electronic messages, not a live event or public speaking engagement.
