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FINRA Regulatory Notice 17-06: Our Comment in Response

Post on: April 19, 2017 | Chris Rohde | 0

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On March 27, 2017, WealthForge Securities submitted a comment in response to FINRA Regulatory Notice 17-06Notice 17-06 requested comment on several proposed changes to FINRA’s advertising rules.

In 17-06, FINRA proposed allowing an exception to the prohibition on projections of future performance for customized hypothetical investment planning illustrations. Under this exception, FINRA may allow projections for an asset allocation or other investment strategy, but would still prohibit projections for an individual security. In response to this proposal, FINRA requested comments from members of the industry and other interested parties.

FINRA requested input on several specific questions, including “Are there single investment products that operate like an asset allocation or other investment strategy for which performance projections might be appropriate?” WealthForge believes that performance projections should be allowed for certain real estate funds that contain a portfolio of individual real estate properties and for real estate securities where the underlying assets are currently generating identifiable concerns. To see the full comment by WealthForge, click here.


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Disclaimer: WealthForge provides this information to our clients and other friends for educational purposes only. It should not be construed or relied upon as legal advice.

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Chris Rohde

Chris serves as Associate Corporate Counsel at WealthForge where he advises on an array of areas, including both federal and state securities laws, broker-dealer law, general corporate law matters, and cybersecurity.
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