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

more+
less-

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.