A potential game-changer for the brokerage industry

  • Finra wants to allow brokers to advertise hypothetical investment performance
  • Current rules only allow the use of historical results
  • Finra is seeking approval for a proposal to allow the use of hypothetical performance
  • This would open the door for brokers to promote investment strategies and products
  • The proposal aims to provide more flexibility for brokers in advertising

Brokers may soon have the ability to promote investment strategies and products by using hypothetical performance and return targets. Currently, Finra rules only permit the use of historical results. However, Finra is seeking approval for a proposal that would allow brokers to advertise hypothetical performance. This proposal aims to provide more flexibility for brokers in their advertising efforts and could potentially change the game for the brokerage industry.

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Private Companies: undefined
Key People:

Factuality Level: 7
Justification: The article provides information about a proposed change in Finra rules that would allow brokers to advertise hypothetical performance and return targets. The information provided is clear and does not contain any obvious bias or personal perspective. However, the article is very short and lacks in-depth analysis or additional context. Therefore, while the information presented appears to be accurate, the overall factuality level is not higher than 7.

Noise Level: 2
Justification: The article is very short and does not provide much information or analysis. It mainly serves as a teaser to encourage readers to sign in to read the full article on Barron’s Advisor.

Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the brokerage industry and the potential impact of a proposed rule change by the self-regulator Finra.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses a potential rule change in the brokerage industry, which could have implications for financial markets and companies in the industry. However, there is no mention of any extreme events or their impact.

Reported publicly: www.barrons.com