NFA announced the effective date of rule amendments designed to clarify the applicability of certain NFA rules and interpretive notices for certain regulated entities. The amendments will become effective on January 1, 2020.
As previously covered, the amendments reflect current technology and business practices, and would create consistent requirements concerning hypothetical performance results in certain promotional materials, according to NFA. Specifically, the amendments will modify:
NFA Compliance Rule 2-29 ("Communications with the Public and Promotional Material") to (i) clarify that applicability is limited to futures commission merchant, introducing broker, CPO and CTA members ("certain NFA members"), (ii) expand the definition of "promotional material" to include all forms of communication with the public and apply it to "commodity interests" (not just futures-related products), (iii) specify that the provision concerning radio and television advertisements is applicable to certain NFA members, and (iv) require that any performance-related claims be presented net of all commissions, fees and expenses;
NFA Compliance Rule 2-36 ("Requirements for Forex Transactions, Related Interpretive Notices and Other Technical Amendments to NFA Requirements") to mandate that forex dealer members ("FDMs") and the associates of FDMs comply with certain sections of Compliance Rule 2-29;
relief to qualified eligible persons under CFTC Regulation 4.7 to enforce compliance with certain sections of NFA Compliance Rule 2-29; and
13 Interpretive Notices corresponding with the amendments to NFA Compliance Rules 2-29 and 2-36.
NFA proposed amendments to clarify the applicability of certain NFA rules and interpretive notices to certain regulated entities.
NFA adopted supervisory requirements and technical amendments concerning swap activities.
The NFA proposed incorporating certain supervisory requirements and technical amendments that concern swap activities in its Compliance Rules and Interpretive Notices.
The NFA reminded members of the annual affirmation obligations for certain exempt or excluded commodity pool operators / commodity trading advisors.
The National Futures Association proposed amendments to an Interpretive Notice that would clarify training obligations and information systems security program requirements.
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