FINRA Rule 2210 Retail Communications Definition and Approval
Under FINRA Rule 2210, any written or electronic communication distributed or made available to MORE than 25 retail investors within any 30-calendar-day period is classified as:
Retail Communications are written/electronic materials sent to >25 retail investors within 30 days. They require registered principal approval PRIOR TO use (pre-use approval) and may require filing with FINRA's Advertising Regulation Department.
Complete Analysis & Legal Rationale
Correspondence is sent to ≤25 retail investors in 30 days and requires post-use review. Institutional communication is distributed solely to institutional investors.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
>25 retail recipients in 30 days = Retail Communication requiring pre-use principal signoff.
Correspondence is limited to 25 or FEWER retail recipients in 30 days.
Retail investors disqualify the piece from institutional classification.
Offering memorandums are Reg D disclosure documents.
Official Standard: Defines Retail Communications, Correspondence, and Institutional Communications.