Institutional Communications Definition and Safeguards
Under FINRA Rule 2210, which recipient qualifies a marketing document as an 'Institutional Communication'?
Institutional investors include banks, savings and loans, insurance companies, registered investment companies, RIAs, FINRA member firms, government entities, and any person/entity with assets of at least $50 MILLION.
Complete Analysis & Legal Rationale
Accredited individuals are NOT institutional investors under Rule 2210. Communications sent to accredited individuals are treated as retail communications.
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:
Financial institutions and entities with ≥$50M in assets qualify as institutional under FINRA rules.
Accredited individuals are considered RETAIL investors under FINRA Rule 2210.
Margin status does not confer institutional status.
Entity must meet the $50M asset threshold.