The SEC approved FINRA’s proposed fourth exception to Rule 2210’s restriction on projected performance on 15 October 2026. It covers a security, portfolio, asset allocation or other investment strategy, subject to safeguards. As of 26 October, FINRA lists filing SR-FINRA-2026-004 among approved changes awaiting determination of an effective date.[1][2]
Conditions attached to the exception
| Area | Requirement or boundary |
|---|---|
| Distribution | Written policies matching communications to the likely financial situation and objectives of the audienceSource 1 |
| Audience | Recipients reasonably expected to have the resources for independent analysis and the financial expertise to understand risks; generally unsuitable for mass circulationSource 1 |
| Disclosure | Explain calculation criteria, assumptions, risks and limitationsSource 1 |
| Records | Retain information identifying the source of projections or targetsSource 1 |
| Other hypothetical results | The exception does not broadly authorise extracted, related or back-tested performanceSource 1 |
The approved version differs from the February proposal. FINRA removed a separate express reasonable-basis requirement and substituted source-focused recordkeeping, while retaining its general standards against misleading projections. The order says those combined duties still require firms to substantiate the basis of the forecasts they communicate.[1]
The framework is principles-based: an investor label alone does not automatically establish compliance. Other advertising and securities obligations continue to apply, and a target remains an assumption-dependent projection rather than a promised return.[1]
Sources & further reading
- SEC approval order: FINRA Rule 2210, release 34-106675 US Securities and Exchange Commission · Accessed 26 Oct 2026
- Approved Rule Changes Pending Determination of Effective Date FINRA · Accessed 26 Oct 2026