As an outgrowth of FINRA’s retrospective rule review of its advertising rules, in Regulatory Notice 17-06 FINRA solicits comments on proposed amendments to FINRA Rule 2210 (Communications with the Public) to create an exception to the rule’s prohibition on projecting performance. The exception would permit a firm to distribute a customized hypothetical investment planning illustration that includes the projected performance of an asset allocation or other investment strategy subject to specified conditions. Comments on the proposal are due to FINRA by March 27th. The proposed exception would provide flexibility for depicting hypothetical performance of an asset allocation model or other investment strategy provided the projected performance does not depict any individual security.
