FINRA Proposes Modernizing Rules for Communications With the Public

The Financial Industry Regulatory Authority (FINRA) has published Regulatory Notice 26-14, requesting industry feedback on a proposal to modernize its rules governing communications with the public.

The proposal is part of FINRA’s ongoing FINRA Forward initiative and is intended to make communications regulation more efficient while maintaining strong investor protections. If adopted, the proposed changes would introduce a more risk-based supervisory approach, streamline retail communication filing requirements, and clarify standards for communications that include investment recommendations.

Comments on the proposal are due September 11.

Why FINRA Is Proposing These Changes

Communications between firms and the investing public have changed significantly over the past decade. Firms now communicate through websites, social media, digital advertising, webinars, podcasts, email campaigns, and other online platforms.

FINRA’s proposal recognizes these changes by seeking to modernize existing rules while continuing to promote:

• Investor protection
• Fair and balanced communications
• Effective supervisory oversight
• Regulatory efficiency

Rather than fundamentally changing the principles behind communications regulation, FINRA aims to update how those principles are applied in today’s marketplace.

A More Risk-Based Supervisory Standard

One of the most significant aspects of the proposal is the introduction of a risk-based standard for supervising retail communications.

Instead of applying the same level of review across all communications, firms would have greater flexibility to focus supervisory resources on communications that present higher regulatory or investor protection risks.

This approach is intended to:

• Better align supervision with actual risk
• Improve operational efficiency
• Allow firms to allocate compliance resources more effectively
• Maintain appropriate oversight of higher-risk communications

Firms should continue ensuring their supervisory systems remain aligned with broader FINRA compliance programs.

Streamlining Retail Communication Filing Requirements

Regulatory Notice 26-14 also proposes updates to FINRA’s retail communication filing requirements.

The goal is to reduce unnecessary administrative burden while preserving FINRA’s ability to oversee communications that may present greater risk to investors.

Although the proposal does not eliminate filing obligations, it seeks to simplify certain requirements and better align them with today’s communications environment.

For firms that regularly produce marketing materials, these changes could improve efficiency while maintaining regulatory accountability.

Clarifying the Standard for Investment Recommendations

Another important aspect of the proposal involves communications that contain recommendations.

FINRA is seeking to clarify how communications should be evaluated when they recommend securities, investment strategies, or related products.

Providing greater clarity in this area could help firms:

• Better distinguish educational content from recommendations
• Apply supervisory procedures more consistently
• Reduce uncertainty when reviewing marketing materials

This proposal complements FINRA’s continued emphasis on investor protection and compliance with Regulation Best Interest (Reg BI).

What Member Firms Should Do Now

Because the proposal has not yet been adopted, firms are not required to make immediate changes.

However, firms should consider:

• Reviewing Regulatory Notice 26-14
• Evaluating current communication review procedures
• Assessing how a risk-based supervisory framework could affect existing workflows
• Determining whether to submit comments before the September 11 deadline

Many firms also use opportunities like this to evaluate broader compliance expertise and supervisory consulting to ensure their communications policies remain current.

Why This Proposal Matters

Communications with the public remain one of FINRA’s most closely supervised areas. As firms increasingly rely on digital marketing and electronic communications, regulatory expectations continue to evolve.

If adopted, the proposal could provide firms with greater flexibility while maintaining strong standards designed to protect investors.

For compliance teams, this represents an opportunity to begin thinking about how future supervisory processes may become more risk-focused and operationally efficient.

Key Takeaways

• FINRA has published Regulatory Notice 26-14 requesting comment on proposed updates to its communications rules.
• The proposal would introduce a more risk-based supervisory approach for retail communications.
• FINRA also proposes streamlining retail communication filing requirements.
• The proposal would clarify standards for communications containing investment recommendations.
• Public comments are due by September 11.

Contact Us

Questions about FINRA’s proposed communications rule changes or your firm’s supervisory procedures?
Contact Quadrant Regulatory Group to discuss communications compliance, marketing review processes, and regulatory readiness.