The Telephone Act of 1991 and the Series 7 Exam
To make sure that certain standards are used when calling potential customers (such as not calling them at midnight), the Telephone Act of 1991 was created. When you’re dealing with potential customers on the phone, you need to know these rules:
You can’t make calls before 8 a.m. or after 9 p.m. local time of the potential customer.
You have to give your name, company name, company address, and phone number.
If you get a potential customer who’s tired of being called, you should place that person on a do not call list. Each firm must maintain its own do not call list and have the U.S. Government’s National Do Not Call List available.
You may not send unsolicited ads by fax machine.
The Telephone Act of 1991 does not apply to existing customers (customers who have executed a trade or had a security in the firm’s account in the previous 18 months) or calls from nonprofit organizations. Existing customers who want to be placed on the “do not call” list after opening an account cannot be solicited but can be updated on the status of their account.