On September 19, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 19-31 (Notice) addressing disclosure innovations in advertising and other communications with the public. The Notice responds specifically to questions that FINRA has received from member firms about how they can comply with FINRA rules when communicating with their customers. FINRA’s goal in issuing the Notice is to help facilitate simplified and more effective disclosures.
FINRA’s Rules 2210 through 2220 focus on communications and are based on the principles of ensuring fair and balanced communications from member firms that do not mislead the investing public. In the Notice, FINRA recognizes that there are many different approaches for achieving this goal in member communications. FINRA addresses the following topics in its responses to member questions:
- innovative design techniques in member communications;
- multiple means of required information disclosures, and that electronic media and design innovations may open new possibilities;
- disclosures limited to the content of what the communication promotes;
- disclosure within the marketing message itself; and
- non-promotional communications (i.e., educational materials or reference resources).
The Notice, with the questions and answers, is available here.