At a glance
- The exception, which Wealth Advisor Daily previously reported, aligns broker/dealer marketing with the SEC's investment adviser marketing rule and affects retirement offerings such as private-market and guaranteed-income products.
- For advisors at broker/dealers, the rule changes which projected-return illustrations can go to clients, subject to firm compliance review.
- Issa Hanna, a partner at Eversheds Sutherland (US) LLP, told the outlet the change closes a mismatch in place since the SEC's marketing rule took effect in 2022: private-fund advisers could present hypothetical performance while broker/dealers distributing the same materials generally could not.
Broker/dealers can distribute projected performance and targeted-return information under a FINRA rule the SEC approved, PLANADVISER — Advice reported.
The exception, which Wealth Advisor Daily previously reported, aligns broker/dealer marketing with the SEC's investment adviser marketing rule and affects retirement offerings such as private-market and guaranteed-income products.
For advisors at broker/dealers, the rule changes which projected-return illustrations can go to clients, subject to firm compliance review. FINRA already allows certain investment-analysis tools and calculators, and the effect on retirement-income illustrations may depend on how firms use the new exception alongside those tools.
Issa Hanna, a partner at Eversheds Sutherland (US) LLP, told the outlet the change closes a mismatch in place since the SEC's marketing rule took effect in 2022: private-fund advisers could present hypothetical performance while broker/dealers distributing the same materials generally could not.
Reported by the Practice management desk from PLANADVISER — Advice, PLANADVISER — Advice and Wealth Advisor Daily archive. Published . Corrections