Regulatory Update: FINRA NTM 19-31, Disclosure Innovations in Advertising and Other Communications with the Public

FINRA issued this Notice in an effort to responds to questions that FINRA has received regarding how they can comply with FINRA rules when communicating with customers—particularly when using websites, email and other electronic media—while ensuring fair and balanced presentations.  These questions include:

Q1. Technology and advances in communication have provided members with new ways of communicating with investors. How does FINRA view innovative design techniques in member communications?

Q2. Many disclosures in marketing materials have become quite extensive. Are all of these disclosures required by FINRA?

Q3. Is it necessary to disclose risks, costs or other drawbacks in a communication that are unrelated to its content?

Q4. If disclosures are integrated into the body of a marketing message or other communication, must they be as extensive as disclosures presented in a separate footnote or disclaimer?

Q5. Members communicate with the public in a number of ways in addition to marketing messages. How does FINRA consider disclosures for non-promotional communications like educational materials or reference resources?

Read the NTM here: https://www.finra.org/rules-guidance/notices/19-31