UNIT 27 QBANK

Question 1

Which of the following scenarios would not violate general standards regarding member firm communications?

A) A registered representative with a master’s degree in astronomy notes that this is a benefit when choosing securities in the aerospace industry sector.
B) A customer is shown a brochure outlining how the use of stop orders completely prevents a customer from losing any money.
C) A graph exclusively showing penny stocks that have advanced in price more than 75% during each of the past three years is distributed to retail customers.
D) A recruitment advertisement promises substantial training to be delivered to incoming employees.

Answer 1

D) A recruitment advertisement promises substantial training to be delivered to incoming employees.

Explanation
Financial Industry Regulatory Authority (FINRA) holds broker-dealers to certain general standards regarding all member firm communications, including recruitment advertising. Promises of training in recruitment pieces would not be considered exaggerated or misleading. None of the other scenarios would be acceptable and all would be deemed misleading, unbalanced regarding risk, or simply untrue.

Question 2

There are two types of do not call list. What are they and how long do names stay on the list?

A) National list and names remain on list for five years, and broker-dealer list and names remain on list for 10 years
B) Broker-dealer list and name remain on list for five years, and national list and names remain on the list for 10 years
C) Broker-dealer list and names remain until removed by the customer, and national list and names remain for five years
D) Broker-dealer list and a national list; names remain on list until removed by customer

Answer 2

D) Broker-dealer list and a national list; names remain on list until removed by customer

Explanation
For both the broker-dealer list and the national Do-Not-Call list, names are not to be called unless the customers request that their name be removed from the list. There was a prior law that only required the broker-dealer list to hold names for five years, but that has changed and names remain on the list indefinitely.

Question 3

All of the following are provisions of Regulation S-P except

A) the firm must provide the customer with a privacy notice initially when opening the account and annually thereafter.
B) the firm has an obligation to protect the privacy of customer information.
C) the firm must give the customer the opportunity to opt-out semiannually.
D) the firm must give the customer the opportunity to opt-out at the opening of the account.

Answer 3

C) the firm must give the customer the opportunity to opt-out semiannually.

Explanation
The firm must give the opportunity to opt-out annually, not semiannually.

Question 4

All of the following are classifications of communications with the public except

A) retail communications.
B) correspondence.
C) institutional communications.
D) sales literature.

Answer 4

D) sales literature.

Explanation
FINRA has three classifications of communication with the public. Correspondence is communication to 25 or fewer retail investors in a 30-day period. Retail communications is to more than 25 retail investors in a 30-day period. Institutional communication is going to banks, insurance companies, mutual funds, et cetera.

Question 5

During a discussion with a customer about a potential investment opportunity involving securities, standing alone, all of the following would likely be permissible except

A) the registered representative points out only that a tech firm has a brilliant product idea and the CEO has advanced degrees in science.
B) the registered representative shows the customer a brochure with a chart showing best and worst case scenarios for product development over the next year.
C) the registered representative points out, correctly, that the maximum possible loss on this particular investment is probably smaller than the maximum possible gain.
D) the registered representative pessimistically implies that an investment has a good chance of losing money, as well as gaining, because the product might not have a market.

Answer 5

A) the registered representative points out only that a tech firm has a brilliant product idea and the CEO has advanced degrees in science.

Explanation
The CEO may have advanced degrees, and the product idea may be brilliant, but the registered representative has failed to mention that these two things do not guarantee success nor the relevancy of the degree to the product or idea being discussed.

Question 6

All FINRA firms must have business continuity plans. Those plans must include all of the following except

A) data backup and recovery capability.
B) a designated principal and member of senior management to conduct a quarterly review and update of the plan.
C) prompt customer access to funds and securities if the firm is unable to continue business.
D) the name of two emergency contact persons who are principals and members of senior management.

Answer 6

B) a designated principal and member of senior management to conduct a quarterly review and update of the plan.

Explanation
The plan must be reviewed and updated annually, not quarterly.

Question 7

Under the Telephone Consumer Protection Act of 1991 (TCPA), administered by the Federal Communications Commission (FCC), a telephone solicitation is defined as a telephone call

A) initiated for the purpose of encouraging the purchase of, or investment in property, goods, or services.
B) made only to those who have expressed an interest in purchasing the products offered by broker-dealers.
C) made to anyone within the same state as the originator of the call.
D) initiated for the purpose of encouraging the purchase of investment products only such as securities.

Answer 7

A) initiated for the purpose of encouraging the purchase of, or investment in property, goods, or services.

Explanation
Administered by the FCC, the TCPA defines a telephone solicitation as any telephone call initiated for the purpose of encouraging the purchase of, or investment in property, goods, or services. This would include products and services offered in the securities industry by broker-dealers.

Question 8

Of the following, which would not be considered institutional communications with the public?

A) An internal memo promoting a new product that will be offered to your firm’s institutional customers only
B) A letter to another broker-dealer regarding potential business together
C) A communication with an individual designated to act on behalf of your institutional customer
D) A letter to a municipality offering your firm’s services as an underwriter

Answer 8

A) An internal memo promoting a new product that will be offered to your firm’s institutional customers only

Explanation
Institutional communications specifically exclude internal communications such as memos. Communications with another member firm, a government entity, such as a municipality or with someone designated to act on behalf of one of your firm’s institutional customers, would all fall within the definition of institutional communications.

Question 9

Jackson Raleigh, a registered representative in Memphis, TN, has a client who is a pension fund manager for the Tiger Pension Fund. Raleigh creates several flyers of informational literature about the funds available in the Tiger Pension Fund and emails them to the fund manager so that the fund manager can prints copies of the flyers and make them available to the participants in the pension fund. FINRA would classify these flyers as

A) institutional communications.
B) sales literature.
C) retail communications.
D) correspondence.

Answer 9

C) retail communications.

Explanation
FINRA has three classifications of communication with the public. Correspondence is communication to 25 or fewer retail investors in a 30-day period. Retail communications is to more than 25 retail investors in a 30-day period. Institutional communication is going to banks, insurance companies, mutual funds, et cetera. Even though the material was sent to the pension fund, which could be considered institutional communications, because the material was being forwarded to retail investors, it is considered retail communication.

Question 10

Anyone making call cold calls for the firm must disclose all of the following information except

A) the firm’s name.
B) the rep’s address or phone number.
C) the firm’s address or phone number.
D) the rep’s name.

Answer 10

B) the rep’s address or phone number.

Explanation
There is no requirement to disclose the rep’s address or phone number. The others are required by the Telephone Consumer Protection Act.

Question 11

Under regulation S-P, nonpublic personal information would not include a customer’s

A) account balance.
B) information collected through an internet cookie.
C) home address.
D) social security number.

Answer 11

C) home address.

Explanation
The Securities and Exchange Commission (SEC) in Regulation S-P notes examples of nonpublic personal information to include a customer’s Social Security number, account balances, transaction history, and any information collected through an internet cookie. A home address would not be considered nonpublic personal information.

Question 12

A customer has requested that your broker-dealer hold mail for them while they are traveling. Which of the following is true?

A) While away the customer need not be made aware of other ways to monitor activity in the account.
B) Firms may choose or choose not to hold customer mail when requested to.
C) The firm is not responsible for mail while being held.
D) The request can be made verbally and need not be in writing.

Answer 12

B) Firms may choose or choose not to hold customer mail when requested to.

Explanation
While holding mail is a courtesy that firms are permitted to extend to customers, the rule does not require them to. The request must be in writing, and the customer must be made aware of any other methods to keep track of account activity. And lastly, the firm must take actions reasonably designed to ensure that a customer’s mail is not tampered with or used in a manner that would violate Financial Industry Regulatory Authority (FINRA) rules or federal securities laws.

Question 13

Your firm must provide a privacy notice describing its privacy policies to customers

A) whenever a new account is opened and annually thereafter.
B) every third year after the account has been opened.
C) only when the customer indicates a change be made in information previously supplied.
D) whenever a new account is opened only.

Answer 13

A) whenever a new account is opened and annually thereafter.

Explanation
Privacy Notifications under Regulation S-P must be provided to customers whenever a new account is opened and annually thereafter.

Question 14

All of the following would be requirements of the Telephone Consumer Protection Act of 1991 except

A) train representative on use of the National Do Not Call Registry.
B) contact each customer and ask if they wish to be put on the National Do Not Call Registry.
C) have written policies and procedures for the National Do Not Call Registry.
D) record the names and numbers of those who request to be put on the National Do Not Call Registry.

Answer 14

B) contact each customer and ask if they wish to be put on the National Do Not Call Registry.

Explanation
There is no requirement to call customers in advance to ask if they want to be on the National Do Not Call Registry; the other options are required.

Question 15

An individual is solicited with a cold call made by a registered representative. He tells the representative he is not interested in this investment or in making any future investments. Which of the following actions is required by the Telephone Consumer Protection Act of 1991 (TCPA)?

A) A principal of the firm may call the prospect the next time.
B) No calls may be made to the prospect by anyone at the firm.
C) The representative may never make cold calls again.
D) The representative may send a fax regarding future recommendations.

Answer 15

B) No calls may be made to the prospect by anyone at the firm.

Explanation
First the prospect’s name must be placed on the firm’s do-not-call list, and then no one at the firm may call.

Question 16

Joshua, a registered representative, calls a prospect at 7:00 pm only to be told that the caller is in a different time zone, where it is 10:00 pm. Joshua has

A) Not a violation because the area code was local to Joshua’s location
B) Not violated the TCPA because it is still within the allowed time at his location
C) Violated the TCPA because it is after 9:00 pm the prospect’s time
D) Not a violation because the rule is no longer valid in due to emerging mobile technology

Answer 16

C) Violated the TCPA because it is after 9:00 pm the prospect’s time

Explanation
This is still a violation. The rule clearly states that the time requirements are based on the prospective customer’s time. The existence of cell phones does not invalidate the law.

Question 17

A broker-dealer’s business continuity plan (BCP) should be reviewed

A) semiannually by a principal of the firm.
B) annually by a principal of the firm.
C) biannually by a registered representative designated to do so.
D) on an as needed basis or if prompted by Financial Industry Regulatory Authority (FINRA) to do so.

Answer 17

B) annually by a principal of the firm.

Explanation
Business continuity plans (BCPs) are required to be reviewed annually by a principal of the firm.

Question 18

Which of the following is not a category of communications with the public designated by Financial Industry Regulatory Authority (FINRA)?

A) retail
B) market letters
C) correspondence
D) institutional

Answer 18

B) market letters

Explanation
The three categories of communications with the public designated by FINRA are retail, correspondence, and institutional. Market letters, as all sales or advertising pieces would, can fall under any of the three communications categories depending on to whom they are sent or made available to, and the number of recipients.

Question 19

When making unsolicited cold calls to prospects, a registered representative must disclose all of the following to the individual called except

A) the address of any securities issuer mentioned during the call.
B) the caller’s name.
C) the address at which the caller may be contacted.
D) the name of the member broker-dealer firm.

Answer 19

A) the address of any securities issuer mentioned during the call.

Explanation
When making cold calls, the caller must disclose his name and the name of the member broker-dealer, 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. When securities of any issuer are mentioned in such a call, there is no requirement to disclose the address of the issuer.

Question 20

The category of correspondence, one of the three identified as being communications with the public, is defined as

A) written communications only, that have been made available to 25 or fewer retail investors within the past 6 months.
B) electronic communications only, that have been made available to 25 or fewer retail investors within the past 6 months.
C) communications that are targeted only at individuals who currently maintain accounts with the broker-dealer.
D) any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period.

Answer 20

D) any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period.

Explanation
Correspondence can be written or electronic. It can be targeted at either account holders or nonaccount holders of the broker-dealer. The criteria that makes the communication correspondence is that it is distributed to 25 or fewer retail customers within any 30 calendar-day period.

Question 21

A customer has requested that your broker-dealer hold mail for them while they are traveling. Which of the following is true?

A) While away the customer need not be made aware of other ways to monitor activity in the account.
B) Firms may choose or choose not to hold customer mail when requested to.
C) The request can be made verbally and need not be in writing.
D) The firm is not responsible for mail while being held.

Answer 21

B) Firms may choose or choose not to hold customer mail when requested to.

Explanation
While holding mail is a courtesy that firms are permitted to extend to customers, the rule does not require them to. The request must be in writing, and the customer must be made aware of any other methods to keep track of account activity. And lastly, the firm must take actions reasonably designed to ensure that a customer’s mail is not tampered with or used in a manner that would violate Financial Industry Regulatory Authority (FINRA) rules or federal securities laws.

Question 22

Anyone making call cold calls for the firm must disclose all of the following information except

A) the rep’s name.
B) the firm’s address or phone number.
C) the rep’s address or phone number.
D) the firm’s name.

Answer 22

C) the rep’s address or phone number.

Explanation
There is no requirement to disclose the rep’s address or phone number. The others are required by the Telephone Consumer Protection Act.

Question 23

An individual is solicited with a cold call made by a registered representative. He tells the representative he is not interested in this investment or in making any future investments. Which of the following actions is required by the Telephone Consumer Protection Act of 1991 (TCPA)?

A) The representative may never make cold calls again.
B) No calls may be made to the prospect by anyone at the firm.
C) The representative may send a fax regarding future recommendations.
D) A principal of the firm may call the prospect the next time.

Answer 23

B) No calls may be made to the prospect by anyone at the firm.

Explanation
First the prospect’s name must be placed on the firm’s do-not-call list, and then no one at the firm may call.

Question 24

There are two types of do not call list. What are they and how long do names stay on the list?

A) National list and names remain on list for five years, and broker-dealer list and names remain on list for 10 years
B) Broker-dealer list and name remain on list for five years, and national list and names remain on the list for 10 years
C) Broker-dealer list and names remain until removed by the customer, and national list and names remain for five years
D) Broker-dealer list and a national list; names remain on list until removed by customer

Answer 24

D) Broker-dealer list and a national list; names remain on list until removed by customer

Explanation
For both the broker-dealer list and the national Do-Not-Call list, names are not to be called unless the customers request that their name be removed from the list. There was a prior law that only required the broker-dealer list to hold names for five years, but that has changed and names remain on the list indefinitely.

Question 25

Broker/dealers who reserve the right to disclose nonpublic private information about their customers to unaffiliated third parties must

A) provide notice to customers each time a transaction occurs within the account and provide reasonable means for customers to opt out of such disclosures.
B) provide reasonable means for customers to opt out of such disclosures only at the time of the account is opened.
C) require that customers wishing to opt out send a written request with signature witnessed by a notary.
D) provide notice to customers at the time of the account opening and provide reasonable means for customers to opt out of such disclosures.

Answer 25

D) provide notice to customers at the time of the account opening and provide reasonable means for customers to opt out of such disclosures.

Explanation
Regulation S-P requires that if a broker/dealer reserves the right to disclose nonpublic personal information to third nonaffiliated parties, it must notify the customer at the time of the account opening and annually thereafter. Means to opt out of the disclosures must be reasonable and easy. Requiring a written request to opt out would not be considered reasonable means under the regulation.

Question 26

Jackson Raleigh a registered representative in Memphis, TN, has a client that is a pension fund manager for the Tiger Pension Fund. Mr. Raleigh creates several flyers of informational literature about the funds available in the Tiger Pension Fund and emails them to the fund manager so that the fund manager can print copies of the flyers and make them available to the participants in the pension fund. Financial Industry Regulatory Authority (FINRA) would classify these flyers as

A) institutional communications.
B) correspondence.
C) retail communications.
D) sales literature.

Answer 26

C) retail communications.

Explanation
FINRA has three classifications of communication with the public: correspondence is communication to 25 or fewer retail investors in a 30 day period; retail communications is to more than 25 retail investors in a 30-day period; and institutional communication is going to banks, insurance companies, and mutual funds et cetera. Even though the material was sent to the pension fund which could be considered institutional communications because the material was being forwarded to retail investors, it is considered retail communication.

Question 27

Calls made regarding of all of the following under the Telephone Consumer Protection Act of 1991 (TCPA) are exempt except

A) those made that are unsolicited for the purpose of prospecting new clients.
B) those made for legitimate debt collection purposes.
C) those on behalf of a tax-exempt nonprofit organization.
D) those made to parties with whom the caller has an established business relationship.

Answer 27

A) those made that are unsolicited for the purpose of prospecting new clients.

Explanation
The TCPA exempts calls made to parties with whom the caller has an established business relationship or from whom the caller has prior express permission or invitation to call, call made on behalf of a tax-exempt nonprofit organizations or not made for a commercial purpose and those made for legitimate debt collection purposes. Calls made unsolicited for the purpose of prospecting new clients or to solicit sales of securities products or services of broker-dealers are covered by the act.

Question 28

Holding customer mail is consistent with your broker-dealer’s in-house rules. Considering this, if requested to do so, the broker-dealer must

A) have the customer request anew after six months and then each three months thereafter.
B) verify at reasonable intervals that the customer’s instructions still apply.
C) request approval from the Securities Exchange Commission (SEC).
D) await approval from Financial Industry Regulatory Authority (FINRA).

Answer 28

B) verify at reasonable intervals that the customer’s instructions still apply.

Explanation
If the broker-dealer chooses to hold customer mail, once requested to do so in writing the broker-dealer must verify at reasonable intervals that the customer’s instructions still apply. The rule regarding holding customer mail does not require the broker-dealer to request or get SEC or FINRA approval and there is no requirement that the customer make additional requests to continue having the broker-dealer hold mail.

Question 29

All FINRA firms must have business continuity plans. Those plans must include all of the following except

A) alternate methods of communicating with customers.
B) alternate methods of communicating with employees.
C) alternate physical locations at least 100 miles apart in case of a disaster.
D) methods of communicating with regulators.

Answer 29

C) alternate physical locations at least 100 miles apart in case of a disaster.

Explanation
There is no requirement on the distance between alternate sites, but there is a requirement to have alternate physical locations.

Question 30

A registered representative wants to place advertisements in his daughters youth athletic league quarterly sponsorship booklet. He wants to convey in the weekly bulletin at his church that he specializes in retirement planning and 529 plans. Which of the following statements regarding these advertisements is true?

A) The piece will be regulated as correspondence because it is only being forwarded to two organizations.
B) Pre-approval by a principal of the broker-dealer is required.
C) No approval is required because both the youth athletic league and the church would be recognized as bona fide non-profits.
D) The advertisement is considered institutional communications and therefore no principal pre-approval is required.

Answer 30

B) Pre-approval by a principal of the broker-dealer is required.

Explanation
Any piece promoting securities services and/or products intended to be received by more than 25 retail customers within any 30 calendar-day period must be preapproved by a principal before use. Given the intended placements of the piece there is no way to determine the exact number of retail customers who will be exposed to it and within what time frames and therefore it must be regulated as retail communications. It fits neither the definition of correspondence or institutional communications.

Question 31

When making unsolicited cold calls to prospects, a registered representative must disclose all of the following to the individual called except

A) the caller’s name.
B) the address of any securities issuer mentioned during the call.
C) the name of the member broker-dealer firm.
D) the address at which the caller may be contacted.

Answer 31

B) the address of any securities issuer mentioned during the call.

Explanation
When making cold calls, the caller must disclose his name and the name of the member broker-dealer, 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. When securities of any issuer are mentioned in such a call, there is no requirement to disclose the address of the issuer.

Question 32

A broker-dealer’s business continuity plan (BCP) to be enacted in the event of a significant business disruption requires all of the following except

A) prompt customer access to funds and securities.
B) data backup and recovery (hardcopy and electronic).
C) notification to regulators within one hour of the event.
D) alternate physical location of employees if needed.

Answer 32

C) notification to regulators within one hour of the event.

Explanation
In the event of a significant business disruption communication with regulators is essential but the rule does not specify notification within one hour of the event. Each of the remaining points is a requirement of a firms business continuity plan (BCP).

Question 33

During a discussion with a customer about a potential investment opportunity involving securities, standing alone, all of the following would likely be permissible except

A) the registered representative points out only that a tech firm has a brilliant product idea and the CEO has advanced degrees in science.
B) the registered representative points out, correctly, that the maximum possible loss on this particular investment is probably smaller than the maximum possible gain.
C) the registered representative pessimistically implies that an investment has a good chance of losing money, as well as gaining, because the product might not have a market.
D) the registered representative shows the customer a brochure with a chart showing best and worst case scenarios for product development over the next year.

Answer 33

A) the registered representative points out only that a tech firm has a brilliant product idea and the CEO has advanced degrees in science.

Explanation
The CEO may have advanced degrees, and the product idea may be brilliant, but the registered representative has failed to mention that these two things do not guarantee success nor the relevancy of the degree to the product or idea being discussed.

Question 34

In an effort to safeguard customer information which regulation specifies securing desktop and laptop computers and encrypting email?

A) Regulation A+
B) Regulation T
C) Regulation S-P
D) The Securities Exchange Act

Answer 34

C) Regulation S-P

Explanation
Safeguard requirements such as securing desktop and laptop computers and encrypting email to protect customer information is an obligation of financial institutions under Regulation S-P.

Question 35

Your firm must provide a privacy notice describing its privacy policies to customers

A) every third year after the account has been opened.
B) whenever a new account is opened and annually thereafter.
C) whenever a new account is opened only.
D) only when the customer indicates a change be made in information previously supplied.

Answer 35

B) whenever a new account is opened and annually thereafter.

Explanation
Privacy Notifications under Regulation S-P must be provided to customers whenever a new account is opened and annually thereafter.

Question 36

All of the following would be requirements of the Telephone Consumer Protection Act of 1991 except

A) train representative on use of the National Do Not Call Registry.
B) contact each customer and ask if they wish to be put on the National Do Not Call Registry.
C) record the names and numbers of those who request to be put on the National Do Not Call Registry.
D) have written policies and procedures for the National Do Not Call Registry.

Answer 36

B) contact each customer and ask if they wish to be put on the National Do Not Call Registry.

Explanation
There is no requirement to call customers in advance to ask if they want to be on the National Do Not Call Registry; the other options are required.

Question 37

The category of correspondence, one of the three identified as being communications with the public, is defined as

A) electronic communications only, that have been made available to 25 or fewer retail investors within the past 6 months.
B) any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period.
C) written communications only, that have been made available to 25 or fewer retail investors within the past 6 months.
D) communications that are targeted only at individuals who currently maintain accounts with the broker-dealer.

Answer 37

B) any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period.

Explanation
Correspondence can be written or electronic. It can be targeted at either account holders or nonaccount holders of the broker-dealer. The criteria that makes the communication correspondence is that it is distributed to 25 or fewer retail customers within any 30 calendar-day period.

Question 38

Which of the following scenarios would not violate general standards regarding member firm communications?

A) A recruitment advertisement promises substantial training to be delivered to incoming employees.
B) A customer is shown a brochure outlining how the use of stop orders completely prevents a customer from losing any money.
C) A registered representative with a master’s degree in astronomy notes that this is a benefit when choosing securities in the aerospace industry sector.
D) A graph exclusively showing penny stocks that have advanced in price more than 75% during each of the past three years is distributed to retail customers.

Answer 38

A) A recruitment advertisement promises substantial training to be delivered to incoming employees.

Explanation
Financial Industry Regulatory Authority (FINRA) holds broker-dealers to certain general standards regarding all member firm communications, including recruitment advertising. Promises of training in recruitment pieces would not be considered exaggerated or misleading. None of the other scenarios would be acceptable and all would be deemed misleading, unbalanced regarding risk, or simply untrue.

Question 39

A broker-dealer’s business continuity plan (BCP) should be reviewed

A) biannually by a registered representative designated to do so.
B) semiannually by a principal of the firm.
C) on an as needed basis or if prompted by Financial Industry Regulatory Authority (FINRA) to do so.
D) annually by a principal of the firm.

Answer 39

D) annually by a principal of the firm.

Explanation
Business continuity plans (BCPs) are required to be reviewed annually by a principal of the firm.

Question 40

Under the Telephone Consumer Protection Act of 1991 (TCPA), administered by the Federal Communications Commission (FCC), a telephone solicitation is defined as a telephone call

A) made only to those who have expressed an interest in purchasing the products offered by broker-dealers.
B) initiated for the purpose of encouraging the purchase of, or investment in property, goods, or services.
C) made to anyone within the same state as the originator of the call.
D) initiated for the purpose of encouraging the purchase of investment products only such as securities.

Answer 40

B) initiated for the purpose of encouraging the purchase of, or investment in property, goods, or services.

Explanation
Administered by the FCC, the TCPA defines a telephone solicitation as any telephone call initiated for the purpose of encouraging the purchase of, or investment in property, goods, or services. This would include products and services offered in the securities industry by broker-dealers.