# SEC approves FINRA amendment letting brokers share projected and targeted returns

URL: https://www.financialadvsr.com/article/sec-approves-finra-amendment-letting-brokers-share-projected-and-targeted-c25d4f
Published: October 27, 2026
By: Theo Marsh, Regulation Correspondent
Section: Regulation
Publisher: Financial ADVSR (https://www.financialadvsr.com)

Broker-dealers will soon be able to share projected performance and targeted returns under SEC-approved changes to FINRA Rule 2210, though a securities lawyer warns the regimes are not identical.

InvestmentNews reported on October 26, 2026 that broker-dealers will soon be able to share targeted returns under changes to FINRA Rule 2210 that the SEC has approved. The report also cited a securities lawyer who warns that the FINRA and SEC regimes are not identical. Its focus is on hybrid RIAs, which run both advisory and brokerage businesses, and on how they can prepare ahead of the change.

FINRA filed the proposal with the SEC on February 10, 2026, according to a Sidley analysis, and the proposal was published in the Federal Register on February 25, 2026, according to Morgan Lewis. According to the FINRA filing, under the amendment a member could forecast results or present a targeted return for a single security, a portfolio of securities, or an asset allocation or other strategy. Rule 2210 has generally prohibited such projections, subject to exceptions.

Before the amendment, Rule 2210 had three narrow exceptions: certain mathematical illustrations, investment analysis tools, and research price targets, according to a law firm analysis. The SEC approved the amendment on October 15, 2026, and NatLawReview reported that the change carves out a fresh category from the rule's broad prohibition on forecasting returns.

Morgan Lewis said the final text removed the reasonable-basis mandate spelled out in the February proposal, along with a dedicated record-keeping rule for calculations. Under the final text, firms still have to retain documentation showing where their projections came from. Morgan Lewis concluded that the amended rule does not fully align with the SEC Marketing Rule, although it moves the two regimes closer together.

FA Magazine said the October 15 approval carries particular weight for hybrid firms operating under both registrations and for brokers that sell private investments. FA Magazine said a hybrid advisor could describe the same strategy's targeted return across its brokerage and advisory channels without building separate marketing for each, and that private fund sponsors and the broker-dealers that distribute their products are likely to gain the most.

FINRA cautioned that the change is not a free pass to advertise high returns, according to FA Magazine. Commentary from one law firm adds that the approval does not amount to a general license to promote speculative returns to all investors. According to the SEC filing, FINRA's November 2023 proposal had a narrower scope, limited to certain communications aimed at sophisticated investors.

The effective date has not been set. NatLawReview said FINRA intends to publish the date in a later Regulatory Notice. PlanAdviser also reported on the SEC approval and the history of the FINRA proposal.

Key facts:
- FINRA filed the proposal with the SEC on February 10, 2026 (Sidley).
- The proposal was published in the Federal Register on February 25, 2026 (Morgan Lewis).
- The SEC approved the amendment to Rule 2210 on October 15, 2026 (NatLawReview).
- Before the amendment, Rule 2210 had three narrow exceptions for projections (law firm analysis).
- The effective date has not been set; FINRA will announce it in a future Regulatory Notice (NatLawReview).

Why it matters: Dually registered firms and hybrid advisors may be able to describe the same strategy's targeted return across advisory and brokerage channels, which makes the standards for those communications more important to get right. Because the final rule does not fully match the SEC Marketing Rule, compliance teams will need to check each channel against both regimes. Until FINRA sets an effective date, firms should treat the change as approved but not yet operative.

Sources:
- InvestmentNews: https://www.investmentnews.com/regulation-legal-compliance/hybrid-rias-to-get-a-head-start-on-finra-performance-projections-rule/268745
- sec.gov: https://www.sec.gov/files/rules/sro/finra/2026/34-104877.pdf
- natlawreview.com: https://natlawreview.com/article/sec-approves-finra-rule-2210-amendment-allowing-projected-performance-and-targeted
- planadviser.com: https://www.planadviser.com/sec-approves-finra-marketing-rule-allowing-projected-investment-performance-targeted-returns/
- morganlewis.com: https://www.morganlewis.com/pubs/2026/10/finra-finally-broadens-use-of-projected-performance-targeted-returns-in-broker-dealer-communications
- sonnlaw.com: https://sonnlaw.com/finra-rule-2210-projected-returns-investor-guide/
- morganlewis.com: https://www.morganlewis.com/pubs/2026/03/unfinished-business-finras-proposed-rule-2210-changes-on-projections-fall-short-of-marketing-rule-alignment