FINRA Makes Revised Communications Pilot Permanent

Following a successful six-month pilot, FINRA will now allow all firms to voluntarily upload a revised retail marketing communication and have it reviewed free of charge. Part of our FINRA Forward initiative to empower member firm compliance, this new program is designed to reduce burdens for firms to seek a “clean letter” from FINRA indicating that their revised communication meets applicable standards. 

FINRA reviews more than 70,000 retail communications each year for compliance with applicable rules. If we identify the need for revisions—to add risk disclosure, for example—member firms must make those changes before using the communication. However, firms are not required to file revisions with FINRA. In the past, firms seeking an additional review submitted their revised communication as a brand-new filing with an associated filing fee. 

This created uncertainty for both FINRA and member firms. Unless a member submitted a new filing, FINRA generally did not have the opportunity to find out whether the firm made the required changes without conducting an exam or investigation. Likewise, firms who wished to avoid the cost of re-filing their materials lacked confirmation that the materials complied with applicable rules. 

We believe both the industry and the investing public will benefit from the opportunity to have FINRA review revised communications through the program. More than half of eligible firms participated in our pilot—an indication of significant demand for clean letters assuring member firms that they are properly interpreting and implementing our comments. At the same time, FINRA sends roughly 9,000 letters each year notifying member firms of the need to revise retail communications, underscoring our important role in ensuring retail communications adhere to applicable standards. 

Benefits to firms:
  • Save on filing fees and lower administrative burden
  • Gain peace of mind that their communications comply with FINRA rules 
Benefits to the investing public: 
  • FINRA has opportunity to verify that firms have correctly revised their communications
  • More communications seen by retail investors adhere to applicable standards 

Please see our FAQ on FINRA.org to learn more about the program and how to submit a revised communication. Firms are ultimately responsible for ensuring that communications they distribute or make available comply with all applicable standards and rules.