Question

A customer sends a registered representative an email with a question about the objectives of a mutual fund the customer is thinking about purchasing. The RR then sends an email reply to answer the customer's question and recommends the purchase of the fund. Which of the following statements is TRUE regarding the RR's email?

A) It is considered correspondence and is subject to review by his firm.
B) The email is considered official firm business only if sent through the firm's system but it is not subject to firm rules if sent from the RR's home computer.
C) An email is treated like a phone conversation for regulatory purposes and is not subject to review by the firm.
D) The email would be considered retail communication and is subject to review by both the firm and FINRA.

Answer 1

The RR's email is considered correspondence and is subject to review by his firm. (option A)

Step-by-step explanation:

The correct answer is A) It is considered correspondence and is subject to review by his firm.

When a registered representative (RR) receives an email from a customer and sends a reply, it is considered correspondence. Correspondence refers to any written or electronic communication sent or received by a member firm, such as an email. This includes emails sent from the RR's personal email account or home computer. As correspondence, the email is subject to review by the RR's firm to ensure compliance with regulations and firm policies.

Therefore, the RR's email would be subject to review by the firm.