FINRA Seeks Comment on Making Communication Rules Principles-Based

FINRA asked for comments on a proposal to amend Rule 2210 (Communications with the Public) so as to delete many of the fixed conditions of the rule and replace them with principles that firms would decide how to implement.

FINRA proposed three main changes. The first would shift supervision of retail communications from pre-approval to a risk-based approach. Today a qualified principal must review and approve most retail communications before use. FINRA said that is hard to do with fast-moving social media and high-volume, AI-generated content. Under the plan, a firm would write its own procedures to decide which communications need pre-approval, such as those on complex products or using "finfluencers."

The second change would require that any firm producing advertising for the first time have its communications reviewed by FINRA for a one-year period. Currently, new firms must file their public communications 10 days before use during their first year of membership. Some firms were waiting out this one-year clock before advertising. The new rule says the one-year clock doesn't start until the firm actually submits its first communication to FINRA.

The third change would simplify the standard for referencing past recommendations. Today a firm that cites its past specific recommendations must include a prescriptive set of disclosures. FINRA would drop that checklist and instead require that any reference to past recommendations be fair and balanced. FINRA said the change would match the SEC's investment adviser marketing rule, easing compliance for dually registered firms.

FINRA also asked for comment on other ways to revise its communication rules. FINRA noted a separate proposal to align broker-dealer and investment adviser rules on performance projections in communications.

Comments are due by September 11, 2026.