Interpretive Notices

9009 - NFA COMPLIANCE RULE 2-29: REVIEW OF PROMOTIONAL MATERIAL PRIOR TO ITS FIRST USE

(Staff, May 1, 1989; revised July 1, 2000 and January 1, 2020)

INTERPRETIVE NOTICE

NFA offers a program to review the promotional material of an FCM, IB, CPO or CTA Member prior to its first use. This program is voluntary and no Member is required to file promotional material with NFA prior to using the material unless otherwise required to do so by an NFA rule or directive. In addition, the use of this program in no way lessens the requirement that Members review, approve and supervise the use of all of their promotional material. A Member may not rely on or attempt to use NFA staff's review to meet its promotional material supervisory obligations under NFA Compliance Rule 2-29.

Any FCM, IB, CPO or CTA Member wishing to use the pre-review program must submit promotional material to the Compliance Department through NFA's electronic Promotional Material Filing System at least 14 calendar days prior to its first intended use.¹

Promotional material must be submitted to NFA for review by a firm representative who has been designated to file promotional material on behalf of the Member by its security manager. The filing must also include the following information:

• The name of the supervisor(s) who reviewed and approved the promotional material;
• A description of how the promotional material will be used and disseminated to prospective client(s);
• The type(s) of investment products being offered in the promotional material; and
• The date the Member intends to begin using the promotional material.

NFA staff will review submissions as expeditiously as possible. The Member will be notified if additional information is needed or the review cannot be completed within the 14-day period. The firm representative may communicate with the reviewer regarding a particular submission at any time during the review process by sending an electronic message through the system.

NFA will notify the Member by email when the review is complete and instruct the firm to access the Promotional Material Filing System to view any review comments or obtain notification that staff has no further comments and the material may be used.

The Member is responsible for ensuring the accuracy of all information in the promotional material. NFA staff will not be able to independently verify the accuracy of every statement or numerical claim made in a piece of promotional material within the 14-day review period, and submitting promotional material to NFA will not preclude NFA from raising compliance issues with the content of the promotional material or taking a disciplinary action for misstatements, omissions of material facts or other violations of NFA rules that are subsequently identified. NFA staff's review is designed to provide guidance to Members, particularly with regard to whether the material presents the appropriate balance regarding the possibility of profit and the risk of loss and the proper use of disclaimers.

Members may also ask general questions about promotional material or Compliance Rule 2-29 by contacting NFA's Information Center at (312) 781-1410 or (800) 621-3570 or through the "contact" feature of NFA's web site at www.nfa.futures.org. Inquiries will be forwarded to the appropriate personnel for response.

¹ See A Guide to NFA Compliance Rules 2-29 and 2-36 for additional information on NFA's Promotional Material Filing System.