Promotional Material
Chapters in this video
- 0:00 The NFA no-misleading-claims standard and four covered entities
- 2:24 Cherry-picking past performance and selective presentation
- 3:50 Hypothetical results versus actual trading gains
- 5:52 Testimonial safeguards: representative, disclaimer, and paid disclosure
- 7:11 Pre-use review workflow and recordkeeping requirements
- 9:13 Rapid-fire exam recap
What this video covers
- Which four entities (FCMs, IBs, CPOs, and CTAs) fall under the NFA's single promotional-material standard, and what the core no-misleading-claims rule actually prohibits
- Why selective presentation of past performance (cherry-picking winning accounts) violates the rule even if every number shown is mathematically real
- What the prescribed cautionary disclaimer for hypothetical results must say, and why paper backtests can never be presented as actual trading gains
- The three safeguards for compliant testimonials: representative experience, the not-indicative-of-future-performance statement, and disclosure of payment
- Why qualified personnel must review promotional material before use, not after complaints, and why waiting for a problem is a guaranteed wrong answer
- The recordkeeping requirement for promotional material, including the documents showing how hypothetical results were calculated
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 3 course also includes adaptive practice questions and spaced-repetition flashcards, free through the end of 2026.