Educational Communication on Recruiting
Chapters in this video
- 0:00 FINRA Recruiting Disclosure Rule purpose and scope
- 1:37 FINRA-prepared communication versus firm-drafted trap
- 2:45 Two triggers: contact and transfer absent contact
- 3:30 Three delivery methods and the three business day rule
- 4:04 Three-month window start, end, and post-window obligations
- 5:03 Express rejection exception and Cora's transfer twist
- 6:01 Five disclosure themes in the FINRA document
- 7:02 Rapid-fire exam recap
What this video covers
- Why the educational communication must be FINRA-prepared, not firm-drafted, and what happens if a firm substitutes its own document
- Which two events trigger the delivery obligation: individualized contact about transferring assets, then a transfer absent individualized contact
- How delivery timing varies by contact type: written (must accompany), electronic (hyperlink permitted), or oral (three business days)
- Why the three-month window begins when the rep joins the new firm, and what obligations continue after it closes
- When the express-rejection exception applies, and why a later transfer without further contact re-triggers delivery
- The five themes the FINRA communication prompts the customer to ask: incentives, portability, costs, service, and product differences
- Why the rule does not prohibit transfers, and how a compliant transfer proceeds through Automated Customer Account Transfer Service (ACATS)
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 6 course also includes adaptive practice questions and spaced-repetition flashcards.