Broker-dealers may soon have more flexibility in how they supervise retail communications, but with that flexibility could come greater responsibility. FINRA's latest Rule 2210 proposals suggest a move toward a more risk-based supervisory model while preserving the rule's longstanding requirement that communications be fair, balanced and not misleading.
That broader approach is reflected in two separate proposals that address different aspects of Rule 2210. One proposal set out in Regulatory Notice 26-14 would modernize how firms supervise, review and file retail communications, and would also simplify the rule’s treatment of communications containing recommendations. A separate proposal would create a narrow exception to Rule 2210’s general prohibition against projected performance and targeted returns, as part of FINRA’s effort to more closely align broker-dealer requirements with those applicable to investment advisers.
Among the most significant changes reflected in Regulatory Notice 26-14 is the proposal to replace the current general requirement for principal pre-use approval of retail communications with a risk-based framework under which firms would establish written supervisory procedures identifying which categories of communications require principal pre-use approval. Certain categories of communications, including retail research reports, would remain subject to principal pre-use approval under the existing Rule 2210 framework.
That shift is significant because it would move FINRA away from a more prescriptive model toward one that requires firms to make and document risk-based decisions. The proposal identifies several factors firms should consider when conducting their risk-based assessment, including the nature and complexity of the products or services discussed in the communication, the qualifications and experience of the preparer, whether the communication includes a financial or investment recommendation, whether it is tailored to a specific audience, and the communication's medium and distribution method.
Beyond supervisory review, Regulatory Notice 26-14 also proposes certain targeted changes to firms’ filing obligations. The proposal would streamline selected retail communication filing requirements, including changing some investment-company retail communications containing self-published rankings or comparisons from pre-use filing to post-use filing within 10 business days after first use, and revising when the one-year filing period begins for new members.
Those are targeted adjustments, not a wholesale rollback. More broadly, the proposal signals FINRA's willingness to reconsider more rigid filing obligations while continuing to rely on firms' supervisory systems and Rule 2210's substantive content standards.
Beyond those changes, the proposal would also simplify Rule 2210's treatment of communications containing recommendations by relying more heavily on the rule's general fair-and-balanced standards rather than the current detailed prescription in Rule 2210(d)(7). FINRA explained in Regulatory Notice 26‑14 that the proposal would not change broker-dealers' baseline content standards or their obligations under SEC Regulation Best Interest (Reg BI).
The proposal also addresses how firms communicate through newer technologies. FINRA expressly points to evolving social-media practices and advances in generative AI, and proposes eliminating the existing static-versus-interactive social-media distinction so that social media communications would be reviewed under the same risk-based framework as other retail communications. FINRA also makes clear that firms remain responsible for ensuring communications comply with Rule 2210, whether they are drafted by employees or generated using AI tools.
Separate from those communications reforms, FINRA proposed in February 2026 a narrow exception to Rule 2210's general prohibition on projected performance and targeted returns, subject to conditions concerning the intended audience and specified disclosures.
That proposal was subsequently amended by Partial Amendment No. 1, filed with the SEC on June 30, 2026. The amendment removed the proposal’s express reasonable-basis requirement and explained that the revised proposed rule would instead rely on Rule 2210’s existing general content standards. It also deleted proposed disclosure requirements regarding whether projected performance or a targeted return is net of anticipated fees and expenses and why projected results might differ from actual performance. In addition, it would require firms' records to include information concerning the source of any projected performance or targeted return.
At its June meeting, FINRA's Board approved further revisions that FINRA stated it will file with the SEC, while the proposal currently pending before the Commission would be withdrawn. According to FINRA's Board report, those revisions would allow projections to individuals with respect to specific securities, such as target-date funds, subject to several investor-related conditions.
Even though the proposals are not final, broker-dealers should review whether their compliance programs are prepared for a more risk-based supervisory framework. Under the proposed framework, written supervisory procedures would play a central role in documenting which categories of communications require pre-use approval based on a firm's risk assessment, rather than applying a one-size-fits-all approval process.
For firms that elect not to require pre-use review of all retail communications, the proposed framework would require written supervisory procedures to address training, documentation, surveillance and follow-up. Firms adopting that approach should consider whether existing policies and procedures are sufficiently robust to comply with the requirements set forth in the proposal, if adopted.
More broadly, firms should try to harmonize what FINRA is proposing and what prudent compliance planning requires. FINRA is not prescribing a comprehensive AI governance framework in Rule 2210, but firms that use AI-assisted content tools or distribute communications through fast-moving digital channels should ensure supervisory systems clearly assign responsibility, preserve required records and maintain documentation supporting decisions about which communications require principal pre-use approval.
Finally, firms considering whether to use any projections exception may wish to begin evaluating how they would identify eligible audiences, document assumptions, draft appropriate disclosures and maintain supporting records if a final rule is adopted.
Taken together, FINRA's recent Rule 2210 proposals do not signal lighter supervision. Instead, they reflect a shift toward a supervisory framework that gives firms greater flexibility while placing increased emphasis on documented, risk-based supervisory and compliance systems.
Gregg Breitbart is co-chair of Kaufman Dolowich’s Financial Services and Institutions Practice Group and co-managing partner of the firm’s Fort Lauderdale office.
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