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Most National Futures Association (NFA) members will be required to comply with a broader rule regarding communications with the public and use of promotional material beginning on January 1, 2020. NFA expanded Compliance Rule 2-29 and its related Interpretive Notices to apply to all commodity interest (not just futures-related) activities and better reflect current technology and industry practices.
Revised Rule 2-29 will require all futures commission merchants (FCMs), commodity pool operators (CPOs), commodity trading advisors (CTAs) and some forex dealer members (FDMs) to examine and potentially update their websites, disclosure documents and marketing materials, among other communications. Although NFA clarified that the rule will not apply to swap dealers, any member that is dually registered as a swap dealer will be required to comply with Rule 2-29 with respect to its FCM activities.
Matthew F. Kluchenek and Ansley H. Schrimpf of Mayer Brown LLP will discuss:
- CFTC Part 4 Rules Regarding Calculations and Communications;
- NFA Compliance Rules 2-29 and 2-36: An Overview and What’s New;
- How NFA Compliance Rule 2-29 Affects 4.7 Commodity Pools; and
- NFA and CFTC Advertising-related Enforcement Actions.
Program Level: Update
Intended Audience: Futures commission merchants, commodity pool operators, commodity trading advisors, forex dealer members and compliance professionals involved with promotional material
Advanced Preparation: None