Correspondence Definition and Supervisory Review Timing
A registered representative sends a customized email containing market commentary to 18 existing retail clients. How is this communication classified, and what supervisory review is required?
Communications sent to 25 or fewer retail investors within 30 days are 'Correspondence'.
Complete Analysis & Legal Rationale
Communications sent to 25 or fewer retail investors within 30 days are 'Correspondence'. Unlike Retail Communications, Correspondence does NOT require principal pre-use approval; it is subject to POST-USE review and sampling by a principal under the firm's WSPs.
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:
18 recipients (≤25) = Correspondence; post-use review permitted.
Pre-use approval is only required for Retail Communications (>25 retail investors).
Emails are written communications, not public appearances.
All correspondence is subject to supervisory oversight and record retention.