Finra open to projections in structured products

Regulators and issuers at odds over backtesting versus projections

Washington, DC

The Financial Industry Regulatory Authority (Finra) is as interested in exploring the use of projections to determine the probable performance of a structured product as it is against the use of backtesting. "Finra does not typically allow projections of performance, but the very conservative approach to the notion of projections is a bit outdated," says Thomas Selman, executive vice-president, regulatory policy and legal compliance officer at Finra, speaking on a panel at the Structured Product

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