Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

Must a photocopied magazine article on mutual fund investing be filed with FINRA?

1. Yes, always

2. No, unless requested

3. Yes, if prepared by an employee

4. No, if it is independently prepared

The correct answer is: No, if it is independently prepared

The reasoning behind why a photocopied magazine article on mutual fund investing does not need to be filed with FINRA, provided it is independently prepared, revolves around the nature of communications and their regulatory considerations. FINRA typically requires that advertisements and sales literature aimed at customers be filed, but there are exceptions for content that is independent and not prepared or endorsed by the firm. If the magazine article is a third-party publication and not tailored or influenced by the investment company or its representatives, it falls into a category of communications that can be shared without filing. Such independent content is often seen as a generally available resource, and firms are not held to the same filing requirements for materials that do not specifically come from or are branded by them. In contrast, materials created or altered by the firm, or those that include promotional content directly related to their products and services, would typically require filing to ensure compliance with regulatory standards. Therefore, the correct answer clearly indicates that independent articles originating from outside the firm do not necessitate filing with FINRA, reflecting an understanding of the regulatory framework surrounding marketing materials in the investment industry.