FINRA Offers Guidance On Rules Concerning Digital Communications

FINRA issued guidance to member firms on the application of FINRA Rule 2210 ("Communications with the Public") to social media and digital communications.

Previously, FINRA provided guidance on the application of FINRA Rule 2210 to social media sites and the use of personal devices for business communications (see Regulatory Notices 10-06 and 11-39). FINRA's latest Notice offers additional guidance in the form of a Q&A on similar topics that include text messaging, personal electronic communications, hyperlinks and content sharing, native advertising, and online endorsements.

FINRA notes that third-party content may be subject to FINRA Rule 2210 if a firm either (i) becomes "entangled" in the content (e.g., by paying for or assisting in preparing the material), or (ii) "adopts" the third-party content by expressly or implicitly endorsing the material. The Q&A provides examples of how FINRA applies these principles to various types of electronic communications.