ASA Applauds FINRA Proposal to Modernize Communications Standards

WASHINGTON – The American Securities Association (ASA) today submitted a comment letter applauding the Financial Industry Regulatory Authority's (FINRA) proposal to modernize Rule 2210, the rule governing broker-dealer communications with the public.

"ASA applauds FINRA for modernizing Rule 2210 and for engaging directly with our industry in a thoughtful, pragmatic dialogue to chart a path forward," said ASA President and CEO Chris Iacovella. "FINRA's collaborative, risk-based approach shows real leadership, and we look forward to continuing that work together."

In its letter, ASA voiced support for FINRA's proposed shift from a default principal pre-use approval requirement to a risk-based supervisory standard, along with FINRA's proposal to eliminate the outdated distinction between static and interactive electronic communications. ASA also welcomed FINRA's attention to the growing role of generative artificial intelligence in the development of retail communications, and asked FINRA to provide additional guidance on governance, vetting, and recordkeeping expectations for AI-assisted content.

ASA's letter also raised several implementation-related requests, including a call for additional examiner guidance, a reasonable transition period following any final rule, and clarity on recordkeeping obligations tied to AI-assisted drafts. 

To read ASA's full letter to FINRA, click here.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.