06.23.25

FINRA Revives Plans To Let Brokers Advertise Performance Projections

by: Miriam Rozen

The Financial Industry Regulatory Authority’s (FINRA) Board of Governors voted to advance a proposal that would allow brokers to market targeted returns and performance projections in certain cases. The changes “would create a narrowly tailored exception to the general prohibition on projections and permit the presentation of projected performance and targeted returns when members meet specified conditions," according to the FINRA board. Those conditions would include “adopting policies and procedures, having a reasonable basis for the criteria and assumptions made in calculating the projections or targeted returns and providing specified information.” The Securities and Exchange Commission, which must approve FINRA’s rule changes, last year stayed an order allowing a previous related proposal.

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