NFA Rule 2-30

Key Requirements:

• Members must exercise due diligence to collect customer information that will allow them to understand the customer’s:
  • financial circumstances;
  • trading experience; and
  • ability to evaluate trading risks.
• Customer information must be verified annually for active individual customers.
• Customer information must be reviewed when the customer reports a material change in their circumstances that could impact their risk profile or the adequacy of prior risk disclosures.
• Customers must receive required risk disclosures before opening an account or receiving trading authorization.
• Firms must maintain records, obtain required account approvals, and retain documentation supporting compliance with the rule.
• Members must establish supervisory procedures to ensure customer information is collected and risk disclosures are provided properly.
• Additional requirements apply to security futures accounts.