2026-13713NoticeWallet

FINRA Allows Investment Return Forecasts With Safeguards

Published Date: 7/7/2026

Notice

Summary

FINRA wants to update its rules to let financial firms share predictions about investment returns when talking to the public, but only if they follow certain safety steps. This change affects anyone in the finance world who communicates about investments and aims to make info clearer and more honest. The SEC is reviewing these updates, with decisions and possible money impacts expected soon.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

Firms May Publish Projected Returns

FINRA would allow member firms to project the performance of a security, portfolio, or investment strategy in public communications if the firm adopts and implements written policies and procedures designed to ensure the communication is relevant to the likely financial situation and investment objectives of the intended audience, and provides information to let that audience understand the criteria, assumptions, risks, and limitations behind the projection.

Removal of Certain Substantiation and Disclosure Rules

FINRA's partial amendment removes the Initial Rule Filing requirement that members have a specific 'reasonable basis' for the criteria and assumptions used in projected returns and retain written records supporting that basis, and it deletes the requirement to expressly disclose whether projections are net of anticipated fees and expenses and to state reasons why a projection might differ from actual performance.

Recordkeeping: Source of Projections Required

Partial Amendment No. 1 would require FINRA members to maintain records that include information concerning the source of any projection of performance or targeted return used in public communications, so firms must retain documentation about where projections came from.

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Key Dates

Published Date
7/7/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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