Chapter 3 - Telemarketing - FINRA RULE 3230

Question 1

Hours for Cold Calls

Answer 1

Cold calls can only be made between the hours of 8:00 am and 9:00 pm at the called-person’s location (prospect’s local time)

Question 2

The caller must disclose the following:

Answer 2

The caller must disclose his name and the name of the member firm, the telephone number or address at which the caller may be contacted, and that the purpose of the call is to solicit the purchase of securities or related services

Question 3

Is ID blocking allowed when making a cold call ?

Answer 3

ID blocking is prohibited

Question 4

Members may not make telephone solicitations to persons on this list with three exceptions.

Answer 4

• The member has an established business relationship with the recipient of the call.
• The member has obtained the person’s prior written consent.
• The person making the call has a personal relationship with the recipient of the call

Question 5

With respect to cold call restrictions, an established business relationship exists if:

Answer 5

An established business relationship exists if:

■ the person to be contacted has made a financial transaction or has a security position, a money balance, or account activity with the member within the 18 months immediately preceding the date of the call;

■ the member is(was) the broker-dealer of record for the person within the 18 months immediately preceding the date of the call; or

■ the person has contacted the member to inquire about a product or service within the three months immediately preceding the date of the call.

Question 6

Safe harbor - Do Not Call List

Answer 6

If a member inadvertently calls someone on the National Do-Not-Call list, there is a safe harbor provision in the law. As long as an inadvertent call is made no more than 31 days from the date a firm obtained the latest version of the list, there is no violation.