General Securities Sales Supervisor (Series10) Practice Exam

Under MSRB rules for speach and seminars, which statement is true?

1. All seminar materials must be approved by FINRA

2. Only the content must be approved, not the text

3. Seminar communications must be promotional in nature

4. Material presented generates no responsibility for the member firm

The correct answer is: Only the content must be approved, not the text

In the context of MSRB rules regarding speeches and seminars, it is important to understand the nuances of content approval. The correct statement emphasizes that only the content of the seminar must receive approval, not the entire text or materials presented. This means that while certain aspects of the information shared during a seminar need to be in compliance with regulatory standards, the specific scripted text does not require approval as a whole. The rationale behind this is to allow for flexibility in the delivery of information while ensuring that the underlying messages adhere to compliance standards. This encourages more dynamic and effective communication with participants, as long as the primary content of the presentation adheres to what has been approved. Other options may suggest broader requirements or responsibilities that do not align with these regulatory standards. For instance, not all materials need FINRA approval, and not all seminar communications need to be promotional, as educational content can also be presented. Additionally, member firms do hold a level of responsibility for the materials they disseminate, contrary to the implication in one of the choices. Understanding these distinctions is crucial for compliance within the scope of the securities industry.