Screen an outbound securities call against the telemarketing rule
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the call record, list each outbound telephone call, the local time at the called party's location, whether the file describes an established business relationship, a prior express invitation or permission, or a statement that the person does not wish to receive calls, and whether the number is described as listed on the national do-not-call registry. Record the caller identification the script uses. Do not decide that a call was permitted.
- What the lawyer must review
- The lawyer applies FINRA Rule 3230 to a member or a person associated with a member. Paragraph (a) says no such person shall initiate an outbound telephone call to any residence before 8 a.m. or after 9 p.m., local time at the called party's location, unless the member has an established business relationship under paragraph (m)(12)(A), the member has that person's prior express invitation or permission, or the person called is a broker or dealer. Paragraph (a) also covers a person who has stated that he or she does not wish to receive an outbound call made by or on behalf of the member, and a person whose number is on the Federal Trade Commission's national do-not-call registry. Paragraph (d)(3) says a do-not-call request must be honored within a reasonable time, which may not exceed 30 days from the request. Paragraph (d)(4) requires the caller to give the individual caller's name, the member's name, an address or telephone number at which the member may be contacted, and that the purpose of the call is to solicit the purchase of securities or a related service. Paragraph (b) states exceptions to liability for the national list. The lawyer reads those exceptions. The FTC telemarketing guidance states that, unless a telemarketer has prior consent to do otherwise, it is a violation of the Telemarketing Sales Rule to call a person's home outside 8 a.m. to 9 p.m. local time at the location called. That guidance is the FTC rule. It is not FINRA Rule 3230. The lawyer does not treat one as the other.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.