Achievable SIE

15. Rules & ethics

15.4. Other laws & regulations

Telephone Consumer Protection Act

2 min read

Even though robo-calls can make it feel like there are no limits on telemarketing, the Telephone Consumer Protection Act (TCPA) is a federal law designed to protect Americans from unwanted phone contact. The TCPA applies to communications sent through telephone lines, including phone calls, robo-calls, and faxes.

When a financial professional makes a cold call, several requirements apply.

First, the representative must check two separate do-not-call lists:

The national do-not-call list, maintained by the federal government. If the potential customer is on this list, the financial professional may not place the call.
The firm’s do-not-call list, maintained internally by the firm. If the potential customer is on this list, the representative may not place the call.

If the potential customer isn’t on either do-not-call list, the representative must also call at a reasonable time. The TCPA permits calls only between 8:00am and 9:00pm in the potential customer’s time zone. Calling outside these hours is a violation of the law.

If the representative reaches the prospect, they must provide specific identifying information. They must state:

Their name
The firm’s name
The phone number or address they’re calling from

If the prospect asks not to be contacted and requests placement on a do-not-call list, the representative must add them to the firm’s do-not-call list. After that, the firm may not make sales calls to them, even if they keep doing business with the firm.

There are exceptions. When the customer has an existing relationship with the firm (which includes having done business with the firm in the past 18 months), the representative doesn’t need to check the national do-not-call list, and the 8:00am to 9:00pm window doesn’t apply to a customer who has done business with the firm in that time. The firm’s own do-not-call list still applies to existing customers. A customer’s request for a call has a similar effect: the national list doesn’t need to be checked for three months after a customer asks to be contacted, and the calling window doesn’t apply to a call the customer has invited. In addition, calls made by non-profit organizations, or calls not related to business, are exempt from TCPA requirements.

Telephone Consumer Protection Act (TCPA)

Prevents unwanted phone calls
Covers phone transmissions, including:
- Phone calls
- Robo-calls
- Faxes (facsimile)
Financial professionals must check do-not-call lists prior to calling
Calls must be made between 8:00am and 9:00pm in the time zone of the prospect
Financial professionals must disclose:
- Name
- Firm’s name
- Phone number or address
Existing relationships (business within 18 months): no national do-not-call list check and no calling-hours limit, but the firm’s own list still applies
Customer asks to be contacted: no national list check for 3 months, and no calling-hours limit on a call the customer invites
Does not apply to:
- Non-profits
- Non-business ventures

Next | 15.4.3 Public communications

Telephone Consumer Protection Act

When a financial professional makes a cold call, several requirements apply.

First, the representative must check two separate do-not-call lists:

The national do-not-call list, maintained by the federal government. If the potential customer is on this list, the financial professional may not place the call.
The firm’s do-not-call list, maintained internally by the firm. If the potential customer is on this list, the representative may not place the call.

If the representative reaches the prospect, they must provide specific identifying information. They must state:

Their name
The firm’s name
The phone number or address they’re calling from

Key points

Telephone Consumer Protection Act (TCPA)

Prevents unwanted phone calls
Covers phone transmissions, including:
- Phone calls
- Robo-calls
- Faxes (facsimile)
Financial professionals must check do-not-call lists prior to calling
Calls must be made between 8:00am and 9:00pm in the time zone of the prospect
Financial professionals must disclose:
- Name
- Firm’s name
- Phone number or address
Existing relationships (business within 18 months): no national do-not-call list check and no calling-hours limit, but the firm’s own list still applies
Customer asks to be contacted: no national list check for 3 months, and no calling-hours limit on a call the customer invites
Does not apply to:
- Non-profits
- Non-business ventures

Telephone Consumer Protection Act

When a financial professional makes a cold call, several requirements apply.

First, the representative must check two separate do-not-call lists:

The national do-not-call list, maintained by the federal government. If the potential customer is on this list, the financial professional may not place the call.
The firm’s do-not-call list, maintained internally by the firm. If the potential customer is on this list, the representative may not place the call.

If the representative reaches the prospect, they must provide specific identifying information. They must state:

Their name
The firm’s name
The phone number or address they’re calling from

Telephone Consumer Protection Act (TCPA)

Prevents unwanted phone calls
Covers phone transmissions, including:
- Phone calls
- Robo-calls
- Faxes (facsimile)
Financial professionals must check do-not-call lists prior to calling
Calls must be made between 8:00am and 9:00pm in the time zone of the prospect
Financial professionals must disclose:
- Name
- Firm’s name
- Phone number or address
Existing relationships (business within 18 months): no national do-not-call list check and no calling-hours limit, but the firm’s own list still applies
Customer asks to be contacted: no national list check for 3 months, and no calling-hours limit on a call the customer invites
Does not apply to:
- Non-profits
- Non-business ventures

Telephone Consumer Protection Act

When a financial professional makes a cold call, several requirements apply.

First, the representative must check two separate do-not-call lists:

The national do-not-call list, maintained by the federal government. If the potential customer is on this list, the financial professional may not place the call.
The firm’s do-not-call list, maintained internally by the firm. If the potential customer is on this list, the representative may not place the call.

If the representative reaches the prospect, they must provide specific identifying information. They must state:

Their name
The firm’s name
The phone number or address they’re calling from

Key points

Telephone Consumer Protection Act (TCPA)

Prevents unwanted phone calls
Covers phone transmissions, including:
- Phone calls
- Robo-calls
- Faxes (facsimile)
Financial professionals must check do-not-call lists prior to calling
Calls must be made between 8:00am and 9:00pm in the time zone of the prospect
Financial professionals must disclose:
- Name
- Firm’s name
- Phone number or address
Existing relationships (business within 18 months): no national do-not-call list check and no calling-hours limit, but the firm’s own list still applies
Customer asks to be contacted: no national list check for 3 months, and no calling-hours limit on a call the customer invites
Does not apply to:
- Non-profits
- Non-business ventures