Sales Practices and Promotional Material
- General Prohibition;
- Content of Promotional Material;
- Hypothetical Results;
- Statements of Opinion;
- Supervisory Requirements;
- Filing with NFA;
- Radio and Television Advertisements;
- Definitions; and
- Security Futures Products.
In addition, CFTC Regulation 1.35(a) requires NFA Member FCMs and RFEDs to maintain tape records of all oral communication provided or received that leads to the execution of a transaction in a commodity interest and related cash or forward transaction for one year. For more details, see NFA's 2013 Notice to Members regarding recordkeeping requirements under NFA Compliance Rule 2-10(a) and CFTC Regulation 1.35(a).
NFA Compliance Rule 2-29 requires Members to submit to NFA for pre-approval certain types of promotional material designed to reach a public audience through mass media. This material must be submitted 10 days prior to first use.
Promotional materials requiring NFA pre-approval include:
- radio and television advertisements;
- audio or video advertisements; and
- promotional material relating to Security Futures Products.
NFA will perform reviews of such submissions within 10 days of receipt.
Voluntary Pre-Review Program
NFA assists Members in achieving their regulatory requirements with NFA Compliance Rule 2-29 by offering a Pre-Review Program. This voluntary program is available free of charge to Members whose promotional material has not yet been used. NFA will perform a review of the promotional material within 14 days of receipt and will discuss any comments about the submission with the Member.
Submitting Promotional Material to NFA
All promotional material should be sent to NFA as follows:
National Futures Association
Advertising Regulatory Team
300 South Riverside Plaza, Suite 1800
Chicago, Illinois 60606
Emailed promotional material should be sent to firstname.lastname@example.org with the subject line Promotional Material Submission.
Promotional material submissions must be made by a principal or designated supervisory employee who is responsible for the review and approval of promotional material. If the firm wishes to have an alternative person other than the filer receive review feedback, this should be indicated at the time of the submission.
For more information, please refer to: A Guide to NFA Compliance Rules 2-29 and 2-36: Communications with the Public and Promotional Material.