NFA Proposes New Promoting Prerequisite For Swap Dealers – Finance and Banking


United States: &#13
NFA Proposes New Advertising and marketing Necessity For Swap Dealers &#13


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NFA proposed a new interpretive recognize to NFA&#13
Compliance Rule 2-9(d) (“Supervision”) that&#13
would call for swap dealers (“SDs”) and important swap&#13
participant members (“SD Users”) to build a&#13
supervisory program for the use of internet marketing components. NFA defines&#13
“promoting substance” as a standardized doc utilised to&#13
solicit a counterparty to enter into swap transactions with the SD&#13

NFA stated that an “satisfactory” supervisory technique have to&#13
include things like prepared policies and strategies for (i) examining and&#13
approving promoting materials, (ii) training workers on&#13
suitable marketing elements, and (iii) recordkeeping.&#13
In addition, NFA mentioned that such application must be “made&#13
to fairly be certain” compliance with NFA and CFTC policies&#13
about fraudulent and deceptive procedures.

The interpretive discover will go into influence 10 days just after&#13
submission to the CFTC, assuming there is no CFTC objection.


A great deal of the interpretive recognize is consistent with standard&#13
anticipations of regulated firms associated in revenue of products and solutions to&#13
customers. Nevertheless, if the observe is adopted (and it is drafted to&#13
become successful in 10 days until the CFTC establishes to assessment&#13
the see for approval), then SDs should really review their guidelines and&#13
treatments to be certain consistency with the new interpretations.&#13
Between other matters, the interpretive detect sets forth distinct&#13
expected treatments for “basic” (supposed for all&#13
counterparties or teams of counterparties) audiences and all those&#13
that are “customized to or focused on a individual group of&#13

Most important Sources

  1. NFA Proposed Interpretive Detect: NFA Compliance&#13
    Rule 2-9(d): Swap Vendor and Major Swap Participant Supervision of&#13
    the Use of Promoting Elements
  2. &#13

The articles of this article is meant to offer a common&#13
information to the matter issue. Specialist information should really be sought&#13
about your particular instances.

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