FINRA should heed the advice of a recent GAO report and revisit these rules, which the authors humbly suggest either no longer work as intended, or have effectively been replaced by other rules or guidance.
In response to the GAO recommendation,
RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
Responding to mutual fund companies that charge the regulator fails to consistently communicate new interpretations of existing advertising rules for mutual funds, FINRA says it will change its ways.