Communication & Stakeholder Engagement Flashcards

A customer asks whether their funds are safe from the FCM's creditors. What is the accurate answer?

Answer: Segregated customer funds must be kept separate from the FCM's own funds

The CEA requires customer funds to be segregated from the FCM's own funds, though they are not FDIC or SIPC insured.

A firm receives an NFA inquiry about a complaint. What is the proper response?

Answer: Delay until the customer withdraws

Members must cooperate with NFA and respond truthfully and promptly.

NFA Rule 2-4 requires members to observe which standard in dealing with customers?

Answer: Just and equitable principles of trade, with high standards of commercial honor

Rule 2-4 requires high standards of commercial honor and just and equitable principles of trade.

NFA Rule 2-9 requires a member to do what regarding its employees and agents?

Answer: Diligently supervise them in their futures activities

Rule 2-9 requires diligent supervision of employees and agents.

Within what time period must a customer file a CFTC reparations complaint after the cause of action accrues?

Answer: Two years

Reparations complaints must be filed within two years of the cause of action.

A broker posts a trading-related message on a firm's public social media page. How is it treated?

Answer: As promotional material subject to Rule 2-29 standards

Public posts about futures products are communications with the public and must meet Rule 2-29 standards.

A customer asks about costs. What is the best communication?

Answer: Provide a clear written schedule of commissions and fees

Clear written disclosure of commissions and fees avoids misleading customers.