NFA Sets Effective Date for Changes to Security Futures Risk Disclosure Statement
Co-authored by Christian B. Hennion
The National Futures Association (NFA) has set an October 7 effective date for recent amendments to its Interpretive Notice entitled “NFA Compliance Rule 2-30(b): Risk Disclosure Statement for Security Futures Contracts.” Pursuant to NFA Compliance Rule 2-30(b), NFA members that are notice registered as broker-dealers and their associated persons are required to provide their customers with a risk disclosure statement regarding the trading of security futures products (SFPs) at or before the time that a customer’s account is approved to trade SFPs. NFA members and associates with existing customers approved for SFP trading must distribute the amended paragraph of the risk disclosure statement to such customers no later than the time a confirmation of an SFP transaction is delivered to such customer.
The NFA Notice to Members regarding the amendments is available here.
