Sales Practices and Promotional Material

NFA Compliance Rule 2-29 and Compliance Rule 2-36 address promotional material and Member communication with the public. These rules cover the following:

  • General Prohibition;
  • Content of Promotional Material;
  • Hypothetical Results;
  • Statements of Opinion;
  • Supervisory Requirements;
  • Recordkeeping;
  • Filing with NFA;
  • Radio and Television Advertisements;
  • Definitions; and
  • Security Futures Products.

In addition, CFTC Regulation 1.35(a) requires certain NFA Member IBs 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).

Pre-Approval Submissions

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

Promotional material must be submitted using NFA's Promotional Material Filing System. Promotional material may only be filed by individuals with access to file promotional material on behalf of the Member.

Promotional material submissions must be made by a principal or designated supervisory employee who is responsible for the review and approval of promotional material. Before an individual can file promotional material through the system, the firm's security manager must have designated the individual the authority to file promotional material on behalf of the firm.

For more information, please refer to: A Guide to NFA Compliance Rules 2-29 and 2-36: Communications with the Public and Promotional Material.