The Securities and Exchange Commission formally approved a major regulatory amendment today allowing FINRA registered broker dealers to present targeted returns and projected investment performance to institutional clients. The regulatory action creates a explicit exception to FINRA Rule 2210, easing long standing restrictions on forward looking financial projections across private market placements.
The regulatory overhaul aligns broker dealer communications with modern asset management standards. In December 2020, the SEC modernized its own Investment Adviser Marketing Rule under the Investment Advisers Act of 1940, allowing registered investment advisers to use performance metrics and client testimonials under strict disclosure standards.
https://www.sec.gov/newsroom/press-releases/2020-334
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