FINRA Proposes Changes to Review, Filing and Content Standards for Marketing Materials
FINRA has proposed a complete re-work of the rules governing communications with the public and the content, filing, and review requirements. The new rule consolidates the categories into institutional communications, retail communications, and correspondence, thereby eliminating the old regime based on “advertisements” and “sales literature.” Some significant changes include: (1) filing would be required for all retail communications, not just advertisements; (2) expanding pre-filing to more categories of materials; (3) requiring filing of marketing materials for closed-end funds; and (4) regulating public appearances especially where recommendations are included.
OUR TAKE: The new rule rationalizes several other rules and interpretations. FINRA is also approaching “point-of-sale” type content standards.