Function 1: Seeks Business for the Broker-Dealer from Customers (24% Exam Weight)

Series 6 — Function 1: Seeks Business for the Broker-Dealer from Customers

Master the Series 6 — Function 1: Seeks Business for the Broker-Dealer from Customers function of the Series 6 (Investment Company and Variable Contracts Products) exam with official regulatory rules, quantitative formulas, and targeted practice drills.

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Authoritative Series 6 Study Notes

Key Concepts & Regulatory Highlights

Covers FINRA Rule 2210 communications with the public (retail, correspondence, institutional), telemarketing time-of-day restrictions under FINRA Rule 3230 and the TCPA, SEC Rule 134 tombstone ads, SEC Rule 135a generic advertising, and SEC Rule 482 omitting prospectuses for packaged investment company products.

📐 Essential Calculation Formulas

Retail Communication Threshold

> 25 Retail Investors within 30 Calendar Days

Triggers mandatory pre-use written approval by a registered principal under FINRA Rule 2210.

Permissible Telemarketing Calling Window

8:00 AM – 9:00 PM Recipient Local Time

Applies to all unsolicited residential telephone solicitations under TCPA and FINRA Rule 3230.

📜 Core Regulatory Rules & Requirements

✓FINRA Rule 2210 Categories: Correspondence (<=25 retail investors in 30 calendar days), Retail Communication (>25 retail investors in 30 calendar days, requires principal pre-approval), and Institutional Communication (exclusively to institutional investors).

✓Investment Company Retail Communication Filing: Must be filed with FINRA within 10 business days of first use (or at least 10 business days prior to first use if it includes self-created rankings or is by a new member in its first year).

✓FINRA Rule 3230 (Telemarketing): Outbound cold calls may only be placed between 8:00 AM and 9:00 PM local time of the called person's residence. Established Business Relationship (EBR) exception lasts 18 months after a transaction or 3 months after an inquiry.

✓SEC Rule 135a Generic Advertising: May describe general investment company types and invite inquiries, but CANNOT name a specific mutual fund or variable contract.

✓SEC Rule 482 Omitting Prospectus: May include standardized performance (1-, 5-, and 10-year average annual total returns current to the most recent calendar quarter-end), but CANNOT contain a purchase application.

💡 High-Yield Exam Watchouts

•Supplemental sales literature (SEC Rule 156) must always be accompanied or preceded by a statutory or summary prospectus.
•Standardized mutual fund yield quotations in retail ads must reflect the maximum front-end sales load and annual operating expenses.

Why Study Series 6 — Function 1: Seeks Business for the Broker-Dealer from Customers?

The Series 6 — Function 1: Seeks Business for the Broker-Dealer from Customers portion of the Investment Company and Variable Contracts Products (Series 6) exam is critical for passing on your first attempt. Understanding these concepts builds both test-day precision and practical regulatory fluency.

Our practice questions and formulas are engineered to mirror the official Series 6 blueprint and statutory complexity you'll encounter at Prometric.

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