Communication & Stakeholder Engagement Flashcards

Before a retail customer's futures account is opened, what must the FCM or IB furnish under CFTC Rule 1.55?

Answer: A risk disclosure statement with the customer's signed acknowledgment

Rule 1.55 requires delivery of the risk disclosure statement and a signed acknowledgment before the account is opened.

Which NFA rule governs communications with the public and promotional material?

Answer: Compliance Rule 2-29

NFA Compliance Rule 2-29 sets standards for communications with the public and promotional material.

Promotional material that presents hypothetical trading results must include what?

Answer: A prominent disclaimer describing the inherent limitations of hypothetical results

Hypothetical results require a prominent cautionary statement about their limitations.

Which statement in a firm's advertisement would violate NFA promotional standards?

Answer: 'Futures trading is a sure path to steady profits.'

Promising or implying assured profits is false and misleading under Rule 2-29.

How long must an FCM or IB keep records of written customer complaints under NFA requirements?

Answer: Five years

NFA Rule 2-10 requires complaint records to be kept for five years.

How often must an FCM send account statements to a customer who has open positions or account activity?

Answer: Monthly

Rule 1.33 requires monthly statements for accounts with open positions or activity during the month.

By when must an FCM send a written confirmation of a customer's trade under Rule 1.33?

Answer: No later than the next business day

Rule 1.33 requires trade confirmations promptly, no later than the next business day.