Text Message

A firm receives a Rule 8210 request asking for a representative's personal cell phone records that may contain business-related text messages with a customer. The representative objects, saying the phone is personal property. What should the principal understand about the scope of Rule 8210?

1. A.Personal cell phone records are discoverable only in a customer arbitration, not a FINRA investigationWrong. Rule 8210 independently authorizes FINRA to request relevant records in its own investigations.
2. B.Personal cell phones are entirely outside the scope of any Rule 8210 requestWrong. This overstates the exemption; relevant business-related content is not automatically shielded merely because the device is personally owned.
3. C.Rule 8210's reach extends to relevant business-related records regardless of whether they reside on a personal deviceCorrect. Relevance to the matter under investigation, not device ownership, determines whether records fall within Rule 8210's scope.
4. D.Personal cell phone records may only be requested with a court orderWrong. Rule 8210 requests do not require a court order; FINRA's authority under the rule is a membership condition, not a judicial subpoena process.

Why: Rule 8210's information request authority reaches records relevant to the matter under investigation, including business-related communications that occurred through personal devices, when relevant to the inquiry. The device's personal ownership does not automatically place business-related content beyond the reach of a Rule 8210 request.

A representative regularly exchanges text messages with customers about their accounts using her firm-issued phone, but these text messages are not captured by the firm's communication retention system, unlike her emails. What is the concern?

1. A.There is no concern, since text messages are inherently informal and are not considered business communications requiring retention the way emails are.Wrong. This treats texts as categorically exempt from retention when their business content is what actually matters.
2. B.The concern is limited to whether the representative used a firm-issued phone rather than a personal phone; texts on a firm-issued phone are automatically retained regardless of the retention system in place.Wrong. This incorrectly assumes firm-issued hardware alone ensures retention without an actual capturing system.
3. C.Business-related text messages should be retained the same way other business communications are, and a gap where texts are not captured by the firm's retention system leaves this category of business communication unsupervised and unrecorded.Correct. Business texts should be retained the same as other business communications; an uncaptured gap leaves them unsupervised.
4. D.The concern applies only if the text messages discuss a specific securities recommendation; texts about general account service matters require no retention.Wrong. This invents a content-based carve-out from the retention obligation for business communications.

Why: Business-related text messages should be retained the same way other business communications are, and a gap where texts are not captured by the firm's retention system leaves this category of business communication unsupervised and unrecorded.

A representative deletes a business-related text message exchange with a customer because he considers the conversation "just chit-chat" rather than a formal business record. What must the principal understand about this?

1. A.This is a violation only if the deleted message discussed a specific securities recommendationWrong. The retention standard is broader than recommendation-specific content; general business-related customer communications are within scope.
2. B.Nothing -- informal conversations are outside the scope of required recordsWrong. Business-related content, not the tone or formality of the conversation, determines whether retention requirements apply.
3. C.This risks a books and records violation, since business-related communications are subject to retention regardless of how casual they seemCorrect. Retention requirements apply based on the business-related nature of a communication, not its informal tone.
4. D.Nothing, as long as the customer does not object to the deletionWrong. The customer's view has no bearing on the firm's independent recordkeeping obligation.

Why: Business-related communications with customers are generally subject to retention requirements regardless of how casual their content is; the standard is whether the communication relates to the firm's business, not the representative's own characterization of its formality. Deleting such a communication risks a books and records violation.

A firm wants to send marketing text messages to prospective customers' cell phones using an automated bulk-texting platform, relying on the same Do-Not-Call Registry check the firm already performs before making live cold calls. Is checking the registry sufficient before beginning this text campaign?

1. A.No — sending autodialed or prerecorded marketing messages to cell phones generally requires the recipient's prior express written consent, an opt-in requirement that is separate from, and not satisfied by, the opt-out Do-Not-Call Registry check used for live calling.Correct. Automated texting to cell phones is generally governed by a separate opt-in consent requirement, not the opt-out registry check.
2. B.Yes, because the Do-Not-Call Registry check governs all outbound marketing contact regardless of the channel or technology used to deliver it.Wrong. This treats the registry check as fungible across channels, missing the separate opt-in consent requirement for this method.
3. C.No, because automated bulk-texting platforms are prohibited outright for any marketing purpose regardless of consent obtained.Wrong. This overstates an absolute prohibition rather than a conditioned consent requirement.
4. D.Yes, but only if the prospective customers are also on the firm's list of existing customers with an established business relationship.Wrong. This misapplies the established business relationship concept, which relates to live telemarketing calls, to a different consent-based requirement for automated texting.

Why: Sending autodialed or prerecorded marketing messages to cell phones generally requires the recipient's prior express written consent, an opt-in requirement that is separate from, and not satisfied by, the opt-out Do-Not-Call Registry check used for live calling.