Rule Atlas
FINRA Rule 3230: Business Development: Prospecting, Telemarketing & Gift Rules
Under FINRA Rule 3230 (FINRA / SEC / MSRB / CBOE), business Development: Prospecting, Telemarketing & Gift Rules establishes the authoritative rules tested on the FINRA Series 7. Navigating FINRA and FTC rules for cold calling, Do Not Call lists, and ethical gift limits for broker-dealers. VoraPrep verifies every threshold, worked table, and practice question below against the current FINRA Series 7 blueprint.
Current Statutory Thresholds & Limits in Effect
Core Statutory Concepts
| Rule / Area | Key Provision | Limit / Requirement |
|---|---|---|
| National DNC | Check every 31 days | Cannot call numbers on registry without EBR |
| Firm DNC | Maintain internal list | Must honor individual requests not to be called |
| Calling Hours | FINRA Rule 3230 | 8:00 AM - 9:00 PM (recipient's local time) |
| Gift Limit | FINRA Rule 3220 | $100 per person, per year (to employees of other firms) |
| EBR Exemption | Established Business Relationship | Exempts from DNC, but not calling hours |
A registered representative is making unsolicited cold calls to potential retail customers. Which of the following actions is prohibited under FINRA rules when seeking new business?
Practitioner Application: Business Development: Prospecting, Telemarketing & Gift Rules
A junior Series 7 representative is assigned to a prospecting team, tasked with generating new leads through telemarketing. The representative wants to ensure all calls comply with federal and FINRA regulations, including the National Do Not Call Registry and permissible calling hours. Additionally, they learn about a firm policy regarding gifts to clients and referral sources and need to understand the limitations to maintain ethical standards and avoid regulatory violations.
- Broker-dealers and their representatives seeking business must adhere to strict rules governing prospecting, telemarketing, and gifts to maintain fair practice and prevent unethical influence.
- Telemarketing and 'Do Not Call' Rules Several regulations govern telemarketing activities, primarily focusing on consumer protection:
Common FINRA Series 7 Distractors on FINRA Rule 3230
- 1Ignoring Firm-Specific DNC: Test questions often provide a scenario where a client asks not to be called, but is not on the national DNC. The trap is to assume it's okay to call. Remember, firm-specific requests must always be honored.
- 2DNC vs. Calling Hours: An Established Business Relationship (EBR) exempts a firm from some DNC registry checks but not from the restricted calling hours (8 AM - 9 PM local time). This is a frequent point of confusion.
- 3Forgetting DNC Update Frequency: Remember the 'at least every 31 days' requirement for checking the National DNC Registry.
- 4DNC Lists: Check National DNC (every 31 days) and firm-specific DNC lists before telemarketing.
- 5Calling Hours: Restrict unsolicited calls to 8:00 AM - 9:00 PM local time of the recipient.
Frequently Asked Questions: FINRA Rule 3230
What is the core rule under FINRA Rule 3230 (Business Development: Prospecting, Telemarketing & Gift Rules)?
Under FINRA Rule 3230 (FINRA / SEC / MSRB / CBOE), business Development: Prospecting, Telemarketing & Gift Rules establishes the authoritative rules tested on the FINRA Series 7. Navigating FINRA and FTC rules for cold calling, Do Not Call lists, and ethical gift limits for broker-dealers. VoraPrep verifies every threshold, worked table, and practice question below against the current FINRA Series 7 blueprint.
How is FINRA Rule 3230 tested on the FINRA Series 7?
Ignoring Firm-Specific DNC: Test questions often provide a scenario where a client asks not to be called, but is not on the national DNC. The trap is to assume it's okay to call. Remember, firm-specific requests must always be honored. DNC vs. Calling Hours: An Established Business Relationship (EBR) exempts a firm from some DNC registry checks but not from the restricted calling hours (8 AM - 9 PM local time). This is a frequent point of confusion.
Where can I practice FINRA Series 7 questions on Business Development: Prospecting, Telemarketing & Gift Rules?
Test yourself instantly with the free playable FINRA Series 7 question on this page, or launch VoraPrep's full FINRA Series 7 adaptive question bank, interactive lessons, and 1:1 exam simulator at voraprep.com/series7.