Finra open to projections in structured products

Regulators and issuers at odds over backtesting versus projections

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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typically allow projections of performance, but the very conservative approach to the notion of projections is a bit outdated," says Thomas Selman, executive vice-president, regulatory policy and legal compliance officer at Finra, speaking on a panel at the Structured Product

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