58. In accordance with FINRA rules, a firm is required to retain records of which of the following social media or digital communications scenarios?
Answer: C
A firm is required to retain records of a text message from an RR to a customer proposing a trade idea.
FINRA rules mandate that firms retain records of communications that relate to their business, including those that propose a trade idea. This means that a text message from a registered representative (RR) to a customer discussing a potential trade must be documented and retained.
A) A social media endorsement of a registered representative (RR) by a customer
While social media endorsements may be significant for marketing purposes, they do not pertain directly to business communications involving trade proposals or customer transactions. Therefore, this scenario does not fall under the specific requirements for record retention as outlined by FINRA.
B) A social media message to an RR highlighting a job posting
This type of communication is not related to the business of securities and does not involve any trading or advisory functions. Consequently, it is not required to be retained under FINRA rules, as it does not pertain to the firm's operations or customer transactions.
C) A text message from an RR to a customer proposing a trade idea
This option is correct because it directly relates to the business activities of the firm. FINRA requires that any communication involving trade proposals be retained, ensuring that the firm maintains a comprehensive record of all relevant interactions with customers that could impact trading decisions.
D) A text message from an RR to a customer, who is a friend, with an invitation to a barbecue
Though this message may involve a personal relationship, it does not relate to any business or trading activity. As such, it does not meet the criteria for retention required by FINRA, which focuses on communications that affect business operations.
Conclusion
The requirement for firms to retain records focuses on communications that directly influence trading or customer transactions. Option C is the only scenario that involves a trade proposal, making it essential for compliance with FINRA rules, while all other options either lack relevance to business operations or do not involve trade-related discussions.