Conflicts of Interest
I am not sure what they are getting at here. In general, all conflicts of interest would need to be disclosed. The interpretive notices to Rule 2-29 and Rule 2-9 give us some insight into this general principal.
Interpretive notice to Rule 2-29: Disclosing conflicts of interest for securities futures products.
Firms must make sure they:
- disclose all conflicts of interest
- review promotional material; firms must make sure that promotional material is accurate and does not gloss over any conflicts of interest
Interpretive notice to Rule 2-9: Ethics training.
Ethics program should address: avoidance of conflicts of interest and proper disclosure and handling of conflicts of interest.
Study Guide >>Forex Regulations >> Conflicts of Interest
2 Comments
I believe this refers to retail forex traders that will be required to register with the NFA as a CTA and in doing so will be required to disclose in their disclosure document that all potential clients must receive a section on conflicts of interest. As many forex adviser receive rebates for transactions these CTAs will be required to disclose the fact that they have a conflict on interest to over trade a customers account. Additional conflicts could relate to other business operations and proprietary trading by the CTA.
Jantz is right, on my disclosure doc I must disclose conflicts of interest…
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