On March 5, the National Futures Association (NFA) submitted to the Commodity Futures Trading Commission (CFTC) proposed amendments to Compliance Rule 2-29 and Interpretive Notice 9003 regarding communications with the public and promotional material. The proposed amendments reflect NFA’s determination that commodity trading advisor (CTA) Members, who are registered investment advisers with the Securities and Exchange Commission, can present past performance data to eligible contract participants (ECPs) on a gross basis in non-public, one-on-one presentations; provided that the CTA Member discloses to the ECP that the performance results are presented on a gross basis, 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 prior to exercising discretion over the client’s account.
Absent notification of additional review by the CFTC, the NFA may establish an effective date for the amendments as early as 10 days after receipt of the submission by the CFTC.
A copy of the proposed amendments is available here.