FINRA's Rules on Marketing Materials: How to Create Compliant Content
Key Takeaways FINRA imposed $88.4 million in fines during 2023, with many violations stemming from non-compliant marketing materials under Rule 2210 The three communication categories retail communications, correspondence, and institutional communications each carry different approval and, in some cases, filing expectations. Common problem areas include language that suggests guaranteed results, weak fee and conflict disclosures, and generic risk descriptions for complex products that may be viewed as misleading. Social media activities such as endorsing or sharing third party content can cause that content to be treated as a firm communication under FINRA’s adoption and entanglement principles Outsourcing financial content is essential for maintaining consistent marketing momentum while reducing regulatory risks Financial advisors face an increasingly complex regulatory environment where one misstep in marketing materials can trigger meaningful exams, remediation, and reputational da...