FINRA Rule 3110.06: Risk-based Review of Correspondence and Internal Communications

By using risk-based principles, a firm must decide to what extent additional policies and procedures for reviewing incoming and outgoing correspondences is necessary for subject matters not listed under FINRA Rule 3110(b)(4).

If the firm determines that its procedures do not require review of all correspondences prior to use or distribution, then the procedure must provide for the following:
(1) The education and training of associated persons regarding the firm’s procedures governing correspondence;
(2) The documentation of such education and training; and
(3) Surveillance and follow-up to ensure that such procedures are implemented and followed.

The firm should conduct the same assessment with regards to its internal communications. However, FINRA Rule 3110.06 does not require that the firm review every internal communication

Link to Rule: http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=11345

Helpful Link: http://finra.complinet.com/en/display/display.html?rbid=2403&element_id=11470