NFA Issues Reminder of FCM Responsibility for Review of Guaranteed IB Promotional Materials

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In response to an increase in the volume of promotional material being submitted by guaranteed introducing brokers (GIBs) to the National Futures Association (NFA) through its Pre-review Program (a free service offered by the NFA to review promotional material prior to its distribution), the NFA has issued a notice reminding NFA members of the requirements of NFA Compliance Rule 2-9 (Rule 2-9). Rule 2-9 requires all promotional material of a GIB to first be reviewed by the supervisory personnel of such GIB’s guarantor futures commission merchant (FCM) before submitting such promotional material to the Pre-review Program. Going forward, all submissions of promotional material by a GIB to the Pre-review Program will be required to include an attestation by supervisory personnel of the guarantor FCM that the material was reviewed and approved in accordance with the requirements of Rule 2-9. Because the NFA’s review under the Pre-review Program is only with respect to compliance with Rule 2-9, such review does not provide a “safe harbor” to the submitting member with respect to other NFA rules.

The NFA’s notice to members may be found here.

 

Topics:  FCMs, Guaranteed Introducing Brokers, NFA

Published In: Communications & Media Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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