October 26, 2020

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October 26, 2020

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FINRA Issues Regulatory Notice on Disclosure Innovations for Advertisements and Other Public Communications

On September 19, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 19-31 (Notice) addressing disclosure innovations in advertising and other communications with the public. The Notice responds specifically to questions that FINRA has received from member firms about how they can comply with FINRA rules when communicating with their customers. FINRA’s goal in issuing the Notice is to help facilitate simplified and more effective disclosures.

FINRA’s Rules 2210 through 2220 focus on communications and are based on the principles of ensuring fair and balanced communications from member firms that do not mislead the investing public. In the Notice, FINRA recognizes that there are many different approaches for achieving this goal in member communications. FINRA addresses the following topics in its responses to member questions:

  • innovative design techniques in member communications;

  • multiple means of required information disclosures, and that electronic media and design innovations may open new possibilities;

  • disclosures limited to the content of what the communication promotes;

  • disclosure within the marketing message itself; and

  • non-promotional communications (i.e., educational materials or reference resources).

The Notice, with the questions and answers, is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume IX, Number 270
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About this Author

Susan Light, Katten Law Firm, Finance Law Attorney, New York
Partner

Susan Light focuses her practice on financial services regulatory matters. She counsels broker-dealers, hedge funds, investment banks and financial services clients on enforcement issues involving the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), other self-regulatory organizations (SROs) and state and federal regulatory authorities. She has particular experience related to sales practice issues, financial and operational issues, anti-money laundering, crowdfunding, cybersecurity, and cryptocurrencies.

...
212-940-8599
James M. Brady, Katten Muchin Law Firm, Finance Attorney
Associate

James Brady concentrates his practice in financial services matters.

While in law school, James was an editor of the Michigan Journal of International Law. He also served as a judicial intern to the Honorable Stephen J. Markman of the Michigan Supreme Court. http://www.kattenlaw.com/James-Brady

312-902-5362
Associate

Leonard Licht is an associate in the Financial Services practice. He advises a broad range of financial market participants, including investment managers to private funds and investors in private funds. Prior to joining Katten, Lenny practiced as a corporate and securities attorney and has also worked in an analytical capacity with a family office.

While in law school, Lenny was a Heyman scholar and member of the Moot Court Honor Society.

212-940-6587
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