FINRA Provides FAQs for "More Compelling" Electronic Disclosure

FINRA provided guidance on how broker-dealers may comply with FINRA disclosure requirements when communicating with customers through electronic media.

The guidance addresses how firms may make required disclosures in electronic media "more compelling." FINRA previously provided guidance on the application of FINRA communications requirements to social and other electronic media in Notices 17-18, 11-39 and 10-06.

Among other things, FINRA Notice 19-31:

• encourages "innovative design techniques" in communicating with customers, including use of narrative, tabular, video or audio content;

• advises members to be "precise and succinct" in their disclosures, and avoid irrelevant boilerplate information that may inhibit investor understanding;

• encourages firms to consider whether disclosures that are typically provided in footnotes may be integrated into the body of a marketing message; and

• notes that communications that do not promote particular products or services are subject to more limited disclosure requirements (e.g., educational and post-sale communications, material promoting a firm's brand or making reference resources available to customers).