SEC Approval of FINRA Rule 2210 Broadens Projected Performance Use
SEC approval of FINRA Rule 2210 amendments lets broker-dealers use projected performance and targeted returns in communications on securities, portfolios and asset allocations, with reasonable-basis and documentation duties.
Per a Morgan Lewis alert republished on Oct. 22, 2026, the SEC has approved FINRA's amendments to Rule 2210, the rule governing communications by member firms with the public. The amendments would permit broker-dealers to include projected performance and targeted returns in communications concerning securities, securities portfolios, asset allocations and other investments, areas where such figures were previously restricted. Firms relying on the new permission would, per the source, need a reasonable basis for any projection and must document the basis and assumptions used.
Why sophisticated counsel and clients care: the change reshapes pre-approval, substantiation and supervisory review workflows for marketing and client-facing material across broker-dealer and affiliated asset-management businesses. It also enlarges the surface for SEC examination and private litigation, since retail communications projecting returns invite scrutiny over misrepresentations, cherry-picking and unsupportable assumptions. Marketing, compliance, supervisory and product teams will need aligned standards before the amended rule takes effect.
What to watch next: the SEC approval order and amended rule text for conditions, caveats and any implementation windows, plus the compliance date and FINRA's related guidance. The excerpt does not specify the approval date, the full text, or whether the SEC imposed modifications, so those points should be confirmed against the order.