The National Futures Association ("NFA") proposed amendments to the NFA's Interpretive Notice titled "Compliance Rules 2-9: Enhanced Supervisory Requirements." NFA states that "Member firms which are identified as having a sales force and/or principals that have been affected by questionable sales practice training and firms which charge commissions and fees well above the industry norm should be required to adopt enhanced supervisory requirements designed to prevent sales practice abuse." Member firms meeting the criteria for enhanced supervisory requirements must, among other things:
- make complete audio recordings of all telephone conversations that occur between their associated persons ("APs") and both existing and potential customers; and
- file all promotional materials with NFA at least ten days prior to its first use.
The proposed amendments are effective ten days after submission, unless the CFTC determines that a further review is necessary. The NFA Board of Directors unanimously approved the proposals.
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