FINRA Proposes to Relax Some Advertising Rules for Funds and Robos
FINRA has proposed amendments to its advertising rules that will help fund companies and robo-advisers. For fund companies, the proposed amendments would (i) eliminate the filing requirement for the manager’s discussion of fund performance in shareholder reports, (ii) relieve firms from having to include backup materials when filing a retail communication that includes fund performance rankings, and (iii) allow firms to file communications that include bond fund volatility ratings within 10 days of first use, rather than before use. FINRA also proposes to remove the filing requirement for investment analysis tool templates, which should help robo-advisers.
OUR TAKE: Many firms may not have even realized that these requirements currently exist. Ask your compliance professional for guidance through the maze of FINRA filing and content requirements.