The Taping Rule

What this video covers

• What defines a disciplined firm for Taping Rule purposes, and the three-year lookback window that determines whether a hire counts toward thresholds
• The three firm-size bands and their triggers; the 40% threshold for 5-9 registered persons, the absolute count of four for 10-19 registered persons, and the 20% threshold for 20 or more registered persons
• Why the middle band uses an absolute count of four, not a percentage, and how the exam buries traps with percentage math in that very band
• The requirement to use all registered persons as the denominator, not just customer-facing reps, when calculating concentration
• The comprehensive taping mandate: all telephone conversations between any registered person and any existing or potential customer must be recorded, with no selective recording permitted
• The one-time 30-day cure window after FINRA notice to reduce staffing strictly below the threshold, plus the 180-day no-rehire bar to prove the reduction is legitimate
• The three-year retention requirement with two years easily accessible, quarterly FINRA filing deadlines, and public BrokerCheck disclosure of taping firm status