The amendment allows broker-dealers to use projected performance and targeted returns in certain communications, but restrictions on mass-audience marketing and continued compliance obligations are likely to limit its impact on retail structured products.
A new amendment to the Financial Industry Regulatory Authority (Finra) rules on performance projections is unlikely to have a major impact on structured products distribution, according to Christopher Schell (pictured), partner at Davis Polk & Wardwell, who expects restrictions on mass-audience communications to limit its use in retail offerings. The US Securities and Exchange Commission (SEC) approved the changes to Finra Rule 2210 on 15 October. The amendment allows broker-dealers to incl