Do-Not-Call Registry

A representative wants to call a current customer with whom the firm has an established business relationship to discuss a new product idea. Does this call require the same Do-Not-Call Registry check as a cold call to a prospect?

1. A.Yes, every outbound call requires an identical Do-Not-Call Registry check regardless of any existing relationshipWrong. This misses the established business relationship exception that generally applies to such calls.
2. B.Not necessarily -- an established business relationship exception generally applies, though the firm's internal do-not-call list for that customer should still be honoredCorrect. The established business relationship exception changes the Registry analysis, though internal do-not-call preferences still need to be respected.
3. C.No, established customers are entirely exempt from all telemarketing-related considerationsWrong. This overstates the exemption; internal do-not-call preferences can still apply even to established customers.
4. D.Yes, but only because the call involves a new product rather than an existing oneWrong. The subject matter of the call is not what determines whether the Do-Not-Call Registry check exception applies; the existing relationship is.

Why: Calls to a party with whom the firm has an established business relationship generally fall within a recognized exception to Do-Not-Call Registry restrictions, though the firm's own internal do-not-call list preferences for that customer should still be honored. The principal should not treat every outbound call identically without considering this distinction.

During a cold call, a prospect tells Thaddeus he does not wish to be contacted again by Thaddeus firm. Under FINRA telemarketing rules, the firm must:

1. A.disregard it, because the prospect is not yet a customer of the firm.Cold-call prospects are precisely who the telemarketing rules protect.
2. B.honour it only if the prospect also registers on the national do-not-call registry.The firm-specific list operates independently of the national registry.
3. C.record the request on its own do-not-call list and honour it firm-wide, not merely for Thaddeus.Correct. A firm-specific request binds the entire member.
4. D.honour it only for Thaddeus, leaving other representatives free to call the same prospect.That is the misuse the rule is written to prevent.

Why: A firm-specific do-not-call request must be recorded and honoured promptly, and the request binds the whole member, not merely the caller who took it. The rule therefore requires the firm to maintain a do-not-call list, to train callers on its use, and to have written procedures for handling requests. A firm-specific request is separate from and additional to the national registry, and it is not defeated by routing the next call through a different representative.

A customer with an established business relationship with the firm previously told a representative directly, "please don't call me again," but did not register on the national Do-Not-Call Registry. A different representative at the firm later calls this customer, reasoning that the established business relationship exception permits the call. What is the concern?

1. A.A customer's direct request that the firm stop calling creates a firm-specific do-not-call obligation that must be honored regardless of the established business relationship exception, which addresses the national registry but does not override a customer's own request to this particular firm.Correct. A direct customer request creates its own firm-specific restriction, separate from the national registry and the established business relationship exception.
2. B.There is no concern, since the established business relationship exception permits any representative at the firm to continue calling the customer regardless of any prior request to stop.Wrong. This is exactly the misconception; a direct customer request creates its own restriction the exception does not override.
3. C.The concern is that the customer's verbal request is invalid unless it was submitted in writing directly to the firm's compliance department.Wrong. This invents a writing requirement that is not how a firm-specific do-not-call request is recognized.
4. D.The concern applies only if the same representative who received the original request is the one placing the new call; calls from a different representative are unaffected.Wrong. A firm-specific do-not-call request applies to the firm, not just to the one representative who happened to receive it.

Why: A customer's direct request that the firm stop calling creates a firm-specific do-not-call obligation that must be honored regardless of the established business relationship exception, which addresses the national registry but does not override a customer's own request to this particular firm.

A customer previously added to the firm's internal do-not-call list later calls the firm directly and asks to be added back to the firm's marketing call list. What must the principal ensure regarding this customer going forward?

1. A.Nothing can be done; once added to the do-not-call list, a customer can never be removedWrong. A customer's own subsequent request to be removed from the firm's internal list should be honored and documented.
2. B.Honor and document the customer's request to be removed from the firm's internal do-not-call list going forwardCorrect. The firm should honor a customer's express request to be removed from its internal list, while still respecting the separate National Registry unless an exception applies.
3. C.Automatically remove the customer from the National Do-Not-Call Registry as well, based on this requestWrong. A request to the firm does not remove the customer from the separate, federally maintained National Do-Not-Call Registry.
4. D.Disregard the request, since do-not-call designations may only be changed in writingWrong. This mischaracterizes the concern; the request itself should be honored and appropriately documented, not disregarded.

Why: A customer may affirmatively request to be removed from the firm's internal do-not-call list, and the firm should honor and document that request going forward, consistent with the customer's own express wishes -- while continuing to separately respect the National Do-Not-Call Registry unless another applicable exception applies.