Tape-Recording of Registered Persons (the Taping Rule)
Chapters in this video
- 0:00 What the Taping Rule is and why it exists
- 1:37 Disciplined firm versus non-disciplined competitor distinction
- 2:13 Size-based hire thresholds (40%, flat four, 20%)
- 3:21 The one-time-only 30-day escape hatch
- 4:42 The 60-day procedure deadline (notification or actual knowledge)
- 5:17 All registered persons taped, not just new hires
- 6:29 Retention: 3 years total, 2 years easily accessible
- 7:03 Taping Rule versus telemarketing rules and disclosure
- 8:12 Rapid-fire exam recap
What this video covers
- What qualifies as a disciplined firm (expelled from any self-regulatory organization, or SEC registration revoked for sales practices) versus a non-disciplined competitor that simply closed or withdrew
- The three firm-size tiers and their distinct triggers: 40% for 5 to 9 registered persons, exactly four hires for 10 to 19 registered persons, and 20% for 20 or more registered persons
- The one-time-only 30-day reduction window to terminate disciplined-firm hires and avoid the taping obligation entirely
- When the 60-day clock to establish special written procedures starts (FINRA notification or actual knowledge, whichever comes first)
- Why all registered persons of the firm must be taped, not only the disciplined-firm hires
- The 3-year total retention requirement with the most recent 2 years kept in an easily accessible place
- How the Taping Rule interacts with telemarketing rules and whether express customer disclosure is required
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 24 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.