One platform to build and maintain a culture of compliance to the FINRA Rule 2210
Speed to market matters. So what if you could reduce the time it takes to create, execute, approve, and distribute all your digital and conventional marketing communications:
Your ads?
Your brochures?
Your whitepapers?
Your direct mail outreach?
FINRA, and various state, federal, and other regulatory agencies’ requirements can slow the process of compliantly managing your firm’s advertising, public relations, and marketing communications processes.
Patrina’s Marketing Materials Module speeds up your compliance process around FINRA marketing rules
One of 8 powerful modules built on the industry’s easiest-to-use interface, Patrina’s Marketing Materials Module streamlines the regulator-required approval process so you can move your marketing materials out of the concept phase and into the hands of your employees, clients, prospects, and referral sources.
Whether you are a one-branch shop or a multinational, Patrina’s Marketing Materials Module enables your marketing team to efficiently:
- Submit marketing material for review and approval;
- Choose appropriate delivery methods ;
- Assign FINRA rules definitions; and
- Target audiences based on investment objective, time horizon, risk tolerance, and investment experience.
- View and comment on content;
- Approve or reject material;
- Create a “first use date” and “sunset date;” and
- Add approved material to a searchable database of approved marketing material.
- Access approved marketing pieces that have not yet reached their sunset dates;
- Circulate targeted marketing pieces approved for a specific segment of investors; and
- Submit planned email, social media, or other public communications for pre-approval.
Craft the perfect message and ensure FINRA advertising compliance
Creating compelling creative content is your strength, and Patrina is here to streamline and speed up your approval and distribution process while ensuring strict compliance with FINRA advertising rules. Furthermore, we’ll assist you in archiving all your marketing materials in strict accordance with SEC 17(a)-4 guidelines.
With Patrina, it’s as straightforward as it gets.
Point. Click. Compliance; Patrina’s that simple.
The regulatory landscape can evolve, and compliance requirements may shift. But Patrina ensures you proactively stay up-to-date, implement necessary changes, and demonstrate your commitment to maintaining ethical and compliant advertising practices.
Just a few clicks, and you’re on the path to compliance and peace of mind.
So, when the FINRA advertising regulators call, will you be ready?
Ensuring Compliance with FINRA Advertising Regulations
When the FINRA advertising regulators come calling, preparation is key to maintaining a successful and compliant presence in the financial industry.
Patrina ensures that your advertising materials adhere to FINRA guidelines is not just about avoiding penalties—it’s about building trust with your clients and prospects.
Be ready for a potential inquiry or review by FINRA’s advertising regulators. Patrina helps you stay diligent in your advertising practices including thorough compliance checks for all promotional materials, from website content and social media posts to brochures and print advertisements.
Click here to schedule your Patrina demo or call +1.212.233.1155 today and we’ll help you do more, spend less, and reduce risk!
What is FINRA Rule 2210?
FINRA Rule 2210, also known as the "Communications with the Public" rule, is a regulation set forth by the Financial Industry Regulatory Authority (FINRA) in the United States. This rule is a fundamental component of FINRA's regulatory framework and governs how broker-dealers and associated persons communicate with the public through various means, including advertisements, sales literature, and other promotional materials.
The primary objective of FINRA Rule 2210 is to ensure that communications made by broker-dealers are fair, balanced, and not misleading to investors. It aims to protect investors by requiring that all communications accurately represent the risks and benefits of a particular investment product or service. Here are some key aspects of FINRA Rule 2210:
- Review and Approval: Broker-dealers are required to establish and maintain a system for the review and approval of all public communications. This process ensures that all materials comply with FINRA rules and accurately represent the products and services offered.
- Fair and Balanced Content: Communications must provide a fair and balanced presentation of investment opportunities. They should not overemphasize potential benefits while downplaying risks or omit important information that could influence an investor's decision.
- Specific Content Requirements: The rule specifies content requirements for various types of communications, including prospectuses, research reports, and retail communications. For example, it mandates the inclusion of risk disclosure statements in certain types of materials.
- Principal Review: Certain communications, such as retail communications that are not subject to specific content standards, must be approved by a registered principal of the firm before use.
- Recordkeeping: Broker-dealers are required to maintain records of all their communications with the public, including drafts and final versions of materials. These records should be retained for a specified period, typically three years.
- Review by FINRA: FINRA has the authority to review and examine broker-dealers' communications to ensure compliance with Rule 2210. Firms found in violation of the rule may face disciplinary actions or fines.
FINRA Rule 2210 plays a vital role in protecting investors by ensuring that they receive accurate and transparent information about investment products and services. It helps maintain the integrity of the securities industry by promoting ethical and responsible communication practices among broker-dealers.
What happens one doesn't follow FINRA regulations?
Failure to follow FINRA regulations can result in a range of consequences, including fines, disciplinary actions, suspension or expulsion from the industry, and damage to a firm's reputation. These regulations are in place to protect investors and maintain market integrity, so non-compliance can lead to legal and financial repercussions, impacting both individuals and firms in the financial industry.
The challenges of meeting email requirements for FINRA compliance.
Meeting email requirements for FINRA compliance poses several challenges for financial firms. First and foremost is the need to retain and archive all email communications, which can be an enormous data management task. Ensuring that emails are stored securely, searchable, and accessible for the required retention periods is crucial.
Monitoring and supervising email content to ensure it complies with FINRA regulations is another significant challenge. This involves reviewing a high volume of emails for potential violations, such as improper marketing claims or undisclosed conflicts of interest.
Another ones is that encryption and data security measures must be implemented to protect sensitive client information, adding complexity to email systems.
Plus keeping up with evolving FINRA regulations and adapting email policies and procedures accordingly can be demanding.
Addressing these challenges often requires investing in advanced email archiving and surveillance technology, implementing robust compliance policies, and providing ongoing training to staff. The cost and effort are necessary to mitigate regulatory risks and maintain trust in the financial industry.
Security solutions for FINRA compliance
Security solutions for FINRA compliance typically include encryption, access controls, and data loss prevention measures to protect sensitive information. Additionally, comprehensive email archiving systems ensure proper retention and retrieval of communications. Monitoring and surveillance tools help detect and prevent non-compliant activities. Regular security assessments, employee training, and incident response plans are vital. Many firms also invest in cybersecurity measures to safeguard against data breaches. A multi-layered security approach is essential to meet FINRA's stringent compliance requirements and protect both client data and the firm's reputation.
Fines for FINRA compliance failures
Fines for FINRA compliance failures can range from thousands to millions of dollars, depending on the severity and frequency of violations. Common infractions include improper record-keeping, inadequate supervision, and misleading communications. Firms and individuals may face monetary penalties, regulatory censures, suspension, or even expulsion from the securities industry. These fines are imposed to uphold market integrity, protect investors, and ensure adherence to FINRA's rules and regulations.
