Series 3 – The National Commodities Futures Test Communication & Stakeholder Engagement 2

Question 1

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

Accepted Answer

A risk disclosure statement with the customer's signed acknowledgment

Answer

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

Question 2

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

Accepted Answer

Compliance Rule 2-29

Answer

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

Question 3

Promotional material that presents hypothetical trading results must include what?

Accepted Answer

A prominent disclaimer describing the inherent limitations of hypothetical results

Answer

Hypothetical results require a prominent cautionary statement about their limitations.

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

Five years

Answer

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

Series 3 – The National Commodities Futures Test Practice Test