FINRA Advances Proposal to Allow Limited Use of Performance Projections
From the desk of Jim Eccleston at 91视频下载链接
The Financial Industry Regulatory Authority (“FINRA”) is moving forward with a proposal that would give broker-dealers limited ability to market performance projections and targeted returns under specific conditions. According to AdvisorHub, the regulator’s Board of Governors voted to advance amendments creating a narrow exception to FINRA’s longstanding prohibition against such projections.
Under the proposed changes, firms could present projected performance or targeted returns if they adopt proper policies and procedures, maintain a reasonable basis for the assumptions and criteria used, and provide required disclosures. The Securities and Exchange Commission (“SEC”) must approve the amendments before they can take effect.
AdvisorHub reports that FINRA framed the proposal as an effort to “better align the regulatory requirements for broker-dealers and investment advisers related to performance projections in written communications to investors.”
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Tags: eccleston, eccleston law, finra, sec