The US broker-dealer regulator is easing rules on how firms can market themselves, reflecting a shift towards modern communication platforms and AI-driven content, with potential implications for the investment industry’s transparency and compliance standards.
The US broker-dealer regulator has moved twice in the space of a week to ease the rules governing how firms market themselves, signalling a broader effort to modernise long-standing communications standards as social media and generative artificial intelligence reshape the way investment products are promoted.
On 2 July, the Securities and Exchange Commission published notice of FINRA’s latest proposal to relax Rule 2210, which governs public communications. The change would let brokers and their firms publish projections of investment returns for securities, portfolios and strategies under conditions that are closer to the SEC’s own marketing regime for registered investment advisers.
One notable shift in the amended filing is the removal of a requirement that firms have a reasonable basis for such forecasts and keep written records supporting the underlying assumptions. According to the filing, firms would also be able to present performance projections without building in the impact of fees and commissions, a point previously reported by Financial Advisor IQ.
FINRA vice-president and associate general counsel Joseph P. Savage argued in a 30 June letter to the SEC that the reasonable-basis standard was no longer necessary, saying existing FINRA requirements already compel communications to rest on fair dealing, good faith and a sound factual foundation.
A second, separate move came on 9 July, when FINRA issued a regulatory notice proposing further changes to Rule 2210 and asking market participants to suggest additional revisions by 11 September. The notice said the review reflects changes in communication habits and technology, including the growth of social media and advances in generative AI.
If adopted, that proposal would remove the current requirement for firm principals to approve retail communications before use. FINRA defines retail communications as written material sent to more than 25 retail customers within 30 days. Instead, firms would be expected to rely on internal controls and designated staff to police compliance.
FINRA said the substance of the standards would remain intact even as the approval process is loosened. Members would still need written procedures for reviewing retail communications and would retain responsibility for ensuring that material is fair, balanced, not misleading and otherwise consistent with the rule.
The twin proposals form part of a wider review of FINRA’s rulebook, enforcement approach and arbitration system. In late June, the self-regulator also published a report calling for a more sweeping rethink of how it disciplines firms, in keeping with a deregulatory mood under the Trump administration.
The push to ease broker marketing rules has been building for months. Industry groups criticised an earlier version of FINRA’s projections proposal during a consultation launched in February, and in May Scott Curtis, FINRA’s board chair, said the effort was intended to narrow the gap between broker-dealer and investment adviser marketing rules.
Under the SEC’s marketing rule for registered investment advisers, firms must adopt policies designed to ensure hypothetical performance is relevant to the likely financial circumstances and goals of the intended audience. Advisers also may not present gross performance figures without net performance figures showing the effect of fees.
- https://www.advisorhub.com/finras-two-pronged-approach-to-reduce-regs-for-broker-marketing-communications/ – Please view link – unable to able to access data
- https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking/sr-finra-2026-004 – The Securities and Exchange Commission (SEC) has published a notice regarding a proposed amendment to FINRA Rule 2210, which pertains to communications with the public. This amendment aims to relax previous restrictions, allowing brokers and their firms to project returns of investment products and strategies to clients and prospects. The SEC must approve any rule change made by FINRA. If the amendment takes effect, it would eliminate the requirement for firms to have a ‘reasonable basis’ for such projections and maintain written records supporting those assumptions.
- https://www.sec.gov/files/rules/sro/finra/2026/34-104877.pdf – The SEC has published a notice of filing for a proposed rule change to amend FINRA Rule 2210, which governs communications with the public. The proposed amendment seeks to allow member firms to project performance or provide targeted returns concerning securities, portfolios, or investment strategies in their communications, subject to specified conditions. This change aims to align FINRA’s rules more closely with the SEC’s Investment Adviser Marketing Rule, which permits certain projections in communications by registered investment advisers.
- https://www.finra.org/rules-guidance/rule-filings/sr-finra-2026-004 – FINRA has filed a proposed rule change with the SEC to amend Rule 2210, which governs communications with the public. The proposed amendment seeks to allow member firms to project performance or provide targeted returns concerning securities, portfolios, or investment strategies in their communications, subject to specified conditions. This change aims to align FINRA’s rules more closely with the SEC’s Investment Adviser Marketing Rule, which permits certain projections in communications by registered investment advisers.
- https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking/finra?file_number=SR-FINRA-2026-004 – The SEC has published a notice of filing for a proposed rule change to amend FINRA Rule 2210, which governs communications with the public. The proposed amendment seeks to allow member firms to project performance or provide targeted returns concerning securities, portfolios, or investment strategies in their communications, subject to specified conditions. This change aims to align FINRA’s rules more closely with the SEC’s Investment Adviser Marketing Rule, which permits certain projections in communications by registered investment advisers.
- https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking/finra?field_display_title_value=&file_number=SR-FINRA-2026-004&month=All&order=field_publish_date&page=0&release_number=&sort=desc&title=&year=All – The SEC has published a notice of filing for a proposed rule change to amend FINRA Rule 2210, which governs communications with the public. The proposed amendment seeks to allow member firms to project performance or provide targeted returns concerning securities, portfolios, or investment strategies in their communications, subject to specified conditions. This change aims to align FINRA’s rules more closely with the SEC’s Investment Adviser Marketing Rule, which permits certain projections in communications by registered investment advisers.
- https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking/finra?field_display_title_value=&file_number=SR-FINRA-2026-004&month=All&order=field_publish_date&page=0&release_number=&sort=desc&title=&year=All – The SEC has published a notice of filing for a proposed rule change to amend FINRA Rule 2210, which governs communications with the public. The proposed amendment seeks to allow member firms to project performance or provide targeted returns concerning securities, portfolios, or investment strategies in their communications, subject to specified conditions. This change aims to align FINRA’s rules more closely with the SEC’s Investment Adviser Marketing Rule, which permits certain projections in communications by registered investment advisers.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article references events from July 9, 2024, and July 2, 2024, indicating recent developments. However, the article was published on July 12, 2026, which is over two years later. This significant delay raises concerns about the freshness of the information. Additionally, the article appears to be based on a press release, which typically warrants a high freshness score. However, the substantial time gap between the events and the publication date diminishes the relevance and timeliness of the content. Given these factors, the freshness score is reduced to 7.
Quotes check
Score:
5
Notes:
The article includes direct quotes from FINRA vice-president Joseph P. Savage and references a letter dated June 30, 2024. However, these quotes cannot be independently verified through the provided sources. The absence of verifiable sources for these quotes raises concerns about their authenticity. Without independent confirmation, the credibility of these statements is questionable. Therefore, the quotes check score is 5.
Source reliability
Score:
6
Notes:
The article originates from AdvisorHub, a niche publication focusing on financial advisor news. While it may be reputable within its niche, its limited reach and potential biases reduce its overall reliability. Additionally, the article appears to be summarising or rewriting content from a press release, which may not provide independent verification of the claims. Given these factors, the source reliability score is 6.
Plausibility check
Score:
6
Notes:
The article discusses FINRA’s proposals to relax Rule 2210, allowing brokers to publish performance projections and modifying approval processes for retail communications. While these changes align with industry trends towards deregulation, the lack of supporting details from other reputable outlets makes the claims less credible. The absence of specific factual anchors, such as names, institutions, and dates, further diminishes the plausibility of the narrative. Therefore, the plausibility check score is 6.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information about FINRA’s regulatory changes but suffers from significant issues regarding freshness, source reliability, and verification independence. The substantial delay between the events and the publication date, reliance on a press release without independent verification, and the lack of supporting details from other reputable outlets diminish the credibility of the content. Given these concerns, the overall assessment is a FAIL with MEDIUM confidence.