National Futures Association (NFA) has set the effective dates for its Interpretive Notice and rule amendments regarding the use of online social networking groups and other media to communicate with the public.
The new NFA Interpretive Notice makes clear that NFA’s rules on promotional materials apply to communications with the public through online media and social networking sites, and provides guidance to NFA members as to their responsibilities with respect to such communications. The Interpretive Notice became effective on December 24, 2009.
The accompanying rule amendments expand Compliance Rule 2-29 to require NFA approval of any audio or video advertisements accessible by members of the public (including via audio podcasts and Internet video postings) that make specific trading recommendations or profit claims. These amendments will take effect on February 1, and any such audio or video advertisements posted online after January 31 must have been reviewed and approved in accordance with the amended rule.