FINRA Steps Up Policing of Advertising

On the heels of a record year for advertising-related violations and fines in 2011—45 cases totaling $21.1 million— FINRA seems determined to protect consumers from misleading or inaccurate marketing communications. Significant new guidelines on broker/advisor advertising were announced in February to strengthen compliance and review procedures. FINRA will even be more vigilant against potentially misleading or exaggerated wording or graphics in marketing materials—from terms such as “cash cow” to images of a treasure chest or pot of gold.