Enhanced Supervisory Requirements

NFA Compliance Rules 2-9 and 2-36(e) place a continuing responsibility on every Member to diligently supervise all aspects of their futures activities, including the sales practices of their employees and agents.

NFA Member firms that employ associated persons (AP) and principals who have worked at firms that have been formally sanctioned or barred for using misleading or deceptive sales practices or promotional material may be required to adopt enhanced supervisory requirements designed to prevent sales practice abuse.

NFA Interpretive Notice: Enhanced Supervisory Requirements specifies the criteria that obligate a Member to adopt these requirements. Firms that qualify for NFA's enhanced supervisory requirements may also petition for a waiver from those requirements.

Those Member firms meeting the criteria for enhanced supervisory requrements must, among other things:

  • Maintain enhanced capital requirements;
  • Make complete audio recordings of all telephone conversations that occur between their APs and both existing and potential customers; and
  • File all promotional materials with NFA at least 10 days prior to its first use.

 

Individuals with proper security credentials can visit ORS to view NFA Member firms disciplined for sales practice.

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