Sales Practices and Promotional Material

Compliance Rule 2-29  addresses the content of promotional material and other communications Members have with the public. It covers a wide range of communications including, but not limited to, sales or educational literature, print and electronic advertising, phone solicitations, sales scripts and material used on the Internet. In general, the rule requires, among other things, that

1. statements made in promotional material be factually true;
2. statements concerning the possibility of profit are balanced by equally prominent statements of the risk of loss;
3. hypothetical results are not presented for any trading program for which the Member has at least three months of actual trading results;
4. statements regarding actual past trading profits mention that past results are not necessarily indicative of future results; and
5. statements of opinion are identified as such.

The rule prohibits the use of any promotional material that

1. is likely to deceive or mislead the reader;
2. uses or is part of a high-pressure sales approach;
3. omits any fact that might make the material misleading or deceptive; or
4. states that futures trading is appropriate to everyone.

NFA Rules Resources NFA Compliance Rule 2-29. Communications with the Public and Promotional Material Use and Supervision of Online Social Networking Communications (podcast) The Do's and Don'ts of Promotional Material (webinar) A Guide to Communications with the Public and Promotional Material Security Futures Products (SFP) Promotional Material and Compliance Issues for Small Firms Workshops (CD) Notices Interpretive Notices January 5, 2010 Effective Dates of NFA Requirements Regarding On-Line Advertising and Social Networking Groups August 24, 2004 Using NFA Publications in Member Promotional Material January 20, 2004 Performance Reporting April 06, 2000 NFA's Review and Approval of Certain Radio and Television Advertisements September 17, 1999 Supervisory Procedures for E-Mail and the Use of Web Sites September 02, 1998 Supplement To June 1996 Notice To Members Concerning Deceptive Advertising October 03, 1996 Amendments to NFA Compliance Rule 2-29(c) and the Interpretive Notice Relating to the Use of Promotional Material Containing Hypothetical Performance Results December 24, 2009 Use of On-line Social Networking Groups to Communicate with the Public October 31, 2008 Forex Transactions August 19, 2004, effective January 10, 2005 Responsibility of NFA Members for Promotional Material that Promotes Third-Party Trading System Developers and their Trading Systems August 21, 2001 Use of Past or Projected Performance; Disclosing Conflicts of Interest for Security Futures Products March 28, 2000 NFA's Review and Approval of Certain Radio and Television Advertisements June 19, 1996 High Pressure Sales Tactics (Staff, June 19, 1996) September 2, 1998 Deceptive Advertising - Leverage June 4, 1996 Deceptive Advertising February 1, 1996 Use of Hypothetical Performance Results May 1, 1989 Review of Promotional Material Prior to its First Use November 19, 1985 Communications with the Public and Promotional Material