Finra introduces exception to 'forward looking' projections
The US Financial and Regulatory Authority (Finra) is seeking comment on proposed amendments to the rules governing communications with the public which would create an exception to the rules' prohibition on projecting performance to permit a firm to distribute a customised hypothetical investment planning illustration that includes the projected performance of an asset allocation or other investment strategy, but not an individual security, subject to specified conditions. The rules apply to registered investment companies' communications concerning mutual funds, exchange-traded funds (ETFs), structured products, variable insurance products, closed-end funds and unit investment trusts (UITs).
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