Performance Projections Proposal | Vigilant Insights
Vigilant Insights
Introduction
On February 11, 2026, FINRA released a Proposal that could reshape how Broker Dealers use Performance Projections in Marketing Materials.
FINRA has asked the SEC to approve amendments to Rule 2210 that would allow Firms to present performance projections and targeted returns for securities and investment strategies.
If approved, Firms would be required to:
- Adopt written policies to ensure projections are appropriate for the intended audience;
- Maintain a reasonable basis and documentation supporting assumptions;
- Clearly disclose fees, risks, limitations, and that actual results may differ.
The Proposal is intended to better align Broker Dealer marketing standards with the SEC’s Marketing Rule for Investment Advisers.
Vigilant Directors, Thayne Gould, MBA, and Will Clark, CIPM, MBA, provided their thoughts and insights on Financial Advisor IQ and that can be found below.
Thayne Gould and Will Clark Insights
Thayne emphasized that the Proposal appears intentionally narrow. In his view, the structure and guardrails suggest FINRA is aiming to limit the use of projections primarily to more sophisticated audiences and to forward-looking calculations, rather than opening the door to broad retail marketing of hypothetical returns. The framing indicates that while flexibility may increase, it will likely remain carefully controlled.
Will Clark noted that hypothetical performance has historically been one of the most scrutinized and high-risk areas in marketing communications. From a compliance standpoint, projections and model returns have often required heightened oversight due to the potential for investor misunderstanding. He observed that FINRA’s Proposal represents a meaningful shift, as it would broaden the circumstances under which Firms can present these types of return streams, consistent with a broader regulatory environment that appears more open to flexibility in communications.
Vigilant’s Conclusion
Although the Proposal may expand marketing flexibility, Performance Projections remain a heightened compliance risk area.
If adopted, Firms should ensure:
- Strong supervisory review processes;
- Well-documented assumptions and methodologies;
- Careful audience targeting;
- Clear and prominent risk and fee disclosures.
Greater flexibility does not reduce regulatory expectations. Firms choosing to use projections should do so with structured governance and disciplined compliance oversight.
Through Vigilant’s Advertising and Marketing Review Services, we help Firms develop and implement Marketing and Advertising Review processes aligned with their compliance goals and regulatory obligations. Our structured approach supports practical oversight while maintaining efficient turnaround times (averaging 24 to 48 hours) so Firms can meet business demands without compromising compliance integrity.