The Financial Industry Regulatory Authority has released the August 2010 Supplement to the October 2002 Security Futures Risk Disclosure Statement. The effective date for the Supplement is October 7. The Futures Risk Statement has general disclosures on the risks and characteristics of security futures. The Supplement adds a new disclosure to accommodate OneChicago, LLC’s proposed change to list a class of security futures for which adjustments will be made for ordinary dividends. The Supplement should be read with the Futures Risk Statement, both of which are available here.
To comply with the requirements of FINRA Rule 2370(b)(11)(A), firms may distribute the Supplement in a variety of ways, including, but not limited to: (1) distributing the Supplement to a customer who has already received the Futures Risk Statement not later than the time a confirmation of a transaction is delivered to every customer that enters into a security futures transaction, or (2) conducting a mass mailing of the Supplement to all customers approved to trade security futures who have already received the Futures Risk Statement.
Click here to read the FINRA Information Notice.