security futures promotional material
DESCRIPTION
Security Futures Promotional Material. Promotional Material. Standardized oral presentations Publications in newspapers or magazines Broadcasts over TV, radio, or other electronic medium. Promotional Material. Standardized reports, letters, publications Any other written material. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/1.jpg)
Security Futures Promotional Material
![Page 2: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/2.jpg)
Promotional Material
• Standardized oral presentations
• Publications in newspapers or magazines
• Broadcasts over TV, radio, or other electronic medium
![Page 3: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/3.jpg)
Promotional Material
• Standardized reports, letters, publications
• Any other written material
![Page 4: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/4.jpg)
Security Futures Promotional Material
• Promotional material that specifically mentions security futures
• What it’s not:– Promotional material that only includes
reference to security futures as one of the services offered by the Member
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Security Futures Promotional Material
• These rules apply to:– FCMs and IBs who are not NASDR
members– FCMs and IBs who advertise using security
futures promotional material
![Page 6: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/6.jpg)
Case Study
![Page 7: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/7.jpg)
Requirements
• For security futures promotional material:– That which reaches a mass audience– All other promotional material
![Page 8: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/8.jpg)
Mass Audience
• Standard Promotional Material:– TV– Radio– Newspaper/Magazine advertisements– Mass mailings– Web sites or other similar electronic
communications
![Page 9: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/9.jpg)
Mass Audience
• Security futures promotional material can only include:– A general description of the SF being
offered– Name of the Member– Contact information for obtaining SF
disclosure statement
![Page 10: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/10.jpg)
Mass Audience
• A “General Description” includes:– Contract specifications– Margin requirements– How the products will be traded
• Screen-based vs. open outcry
• Futures or Securities account
![Page 11: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/11.jpg)
Mass Audience
• Filing requirements:– Promotional material that reaches a mass
audience must be submitted for NFA review and approval 10 days prior to first use
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All Other Promotional Material
• Security futures disclosure statement:– Must accompany or precede all other types
of promotional material
![Page 13: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/13.jpg)
All Other Promotional Material
• Must include:– Name of Member– Date material was first used– A statement that security futures are not
suitable for all customers
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All Other Promotional Material
• Must NOT include:– Any statement suggesting that SF positions
may be liquidated at any time
– Any cautionary statement, caveat or disclaimer that:
• Is not legible
• Attempts to disclaim responsibility for the content of the promotional material, or
• Is misleading or otherwise inconsistent with the content of the material
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All Other Promotional Material
• Statistical tables, charts or graphs:– Must include the source of the information
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All Other Promotional Material
• Claims, comparisons, recommendations or statistics:– Must state that supporting documentation is
available upon request
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Case Study
![Page 18: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/18.jpg)
All Other Promotional Material
• Trade recommendations– Past– Future
![Page 19: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/19.jpg)
All Other Promotional Material
• Current trade recommendations must:– Have a reasonable basis for
recommendations
– Disclose any material conflicts of interest in the underlying security
– Provide contact information for obtaining a list of prior recommendations
– Offer to support the recommendation
![Page 20: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/20.jpg)
All Other Promotional Material
• Past trade recommendations:– The SF
– The underlying security
– A derivative thereof
– The SF recommended
![Page 21: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/21.jpg)
All Other Promotional Material
• Past trade recommendations:– Must set forth all recommendations
regarding the same SF within the last year
– The price at the time of the recommendation
– The price or price range within which the recommendation was to be acted upon
– The general market conditions during the period covered
![Page 22: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/22.jpg)
All Other Promotional Material
• Soliciting for SF managed account programs:– The actual past performance of customer’s
trading the program
– If none, must state that the program is unproven and, if applicable, comply with hypothetical restrictions
![Page 23: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/23.jpg)
Testimonials
• Testimonials must be representative of all reasonably comparable accounts
• Promotional material must state that the testimonial is not indicative of future performance or success
• Promotional material must state if the testimonial was paid for
![Page 24: Security Futures Promotional Material](https://reader034.vdocuments.net/reader034/viewer/2022051517/568157df550346895dc55f74/html5/thumbnails/24.jpg)
All Other Promotional Material
• Supervisory requirements:– Promotional material must be reviewed and
approved in writing by a security futures principal
– All other aspects of NFA Compliance Rule 2-29 pertain to SF promotional material
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QUESTIONS?