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ARTICLE · 18 FEBRUARY 2026

Saw This Coming: FINRA Proposes Rule Change To Permit Projected Performance

K&L Gates
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Everyone wants to know what tomorrow will bring, and FINRA has proposed amendments to Rule 2210 (Proposed Amendments) that would give broker-dealers more flexibility to communicate exactly that – at least as it relates to projected performance and targeted returns.

United StatesFinance and Banking
Jessica D. Cohn
Jessica D. Cohn
Lance Dial
Lance Dial
Derek Lacarrubba
Derek Lacarrubba

Everyone wants to know what tomorrow will bring, and FINRA has proposed amendments to Rule 2210 (Proposed Amendments) that would give broker-dealers more flexibility to communicate exactly that – at least as it relates to projected performance and targeted returns. If adopted, the Proposed Amendments would more closely align FINRA Rule 2210 with the rule governing investment adviser marketing (the Marketing Rule).

Background

FINRA Rule 2210 has long prohibited projections of performance, subject to a few narrow exceptions. The concern is not unreasonable: projections have the potential to be especially misleading, overly persuasive, or misunderstood, particularly by retail investors. At the same time, the utility of projections led the SEC to permit them in advertisements (subject to certain conditions) under the Marketing Rule. This disparate treatment of projections has been a source of tension within the market, preventing brokerage customers from accessing

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