NFA amended communication requirements to allow certain CTAs to make non-public, one-on-one presentations on past performances to eligible contract participants ("ECPs").
As previously covered, Compliance Rule 2-29 ("Communications with the Public and Promotional Materials") and related Interpretive Notice 9003 were amended to provide relief to CTA Members that are also SEC-registered investment advisers as to the disclosure of performance results to ECP clients, so long as the CTA:
- gives the ECP client a written disclosure that the performance results (i) are presented on a gross basis and (ii) do not reflect the deduction of fees and expenses; and
- offers to provide the client with the performance results, net of any fees and expenses agreed upon by the CTA Member and the ECP client at or prior to exercising discretion over the client's account.
The amendments are effective immediately.
Primary Sources
Originally published 22 April 2020
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