FINRA Rule 2210
Also known as: communications with the public rule
FINRA Rule 2210 governs member firms' communications with the public. It sorts communications into retail, institutional, and correspondence categories and requires that all be fair, balanced, and not misleading.
FINRA Rule 2210, titled "Communications with the Public," sets the content, approval, filing, and recordkeeping standards for everything a broker-dealer says publicly — advertisements, websites, social media, sales literature, and letters to customers.
The rule defines three categories by audience. Retail communication is any written or electronic message distributed to more than 25 retail investors within a 30-day period. Correspondence goes to 25 or fewer retail investors in that window. Institutional communication is distributed only to institutional investors, such as banks, insurance companies, registered investment companies, and other broker-dealers.
The category drives the compliance workload. Retail communications generally require approval by a registered principal before use, and certain types — such as those concerning investment companies or options — must be filed with FINRA. Correspondence and institutional communications don't need pre-use principal approval, but they remain subject to supervision, review procedures, and recordkeeping.
Regardless of category, all communications must be based on principles of fair dealing and good faith: statements must be fair and balanced, may not omit material facts, and may not be promissory, exaggerated, or misleading. Predicting or projecting investment performance is prohibited, with narrow exceptions. Rule 2210 is a core topic on the Series 9 exam, which tests supervisors on approval, filing, and content standards for public communications, and it appears across other FINRA exams as well.
Key takeaways
- FINRA Rule 2210 regulates member firms' communications with the public across all media.
- Retail communication reaches more than 25 retail investors in 30 days; correspondence reaches 25 or fewer; institutional communication goes only to institutional investors.
- Retail communications generally require prior approval by a registered principal, and some must be filed with FINRA.
- All communications must be fair, balanced, and free of exaggerated, promissory, or misleading claims.
- The Series 9 exam tests Rule 2210's categories, approval requirements, and content standards in depth.