NFA Compliance Rule 2-29 andCompliance Rule 2-36 address promotional material and Member communication with the public. These rules cover the following:
- Content of Promotional Material;
- Supervisory Requirements;
- Audio and Video Promotional Material;
- Security Futures Products.
In addition, CFTC Regulation 1.35(a) requires certain NFA Member IBs to maintain tape records of all oral communication provided or received that leads to the execution of a transaction in a commodity interest and related cash or forward transaction for one year. For more details, see NFA's 2013 Notice to Members regarding recordkeeping requirements underNFA Compliance Rule 2-10(a) and CFTC Regulation 1.35(a).
Additionally, Interpretive Notice 9073 establishes disclosure requirements for Members engaging in activities related to virtual currencies or virtual currency derivatives.
Pre-Approval Submissions
NFA Compliance Rule 2-29 requires Members to submit to NFA for pre-approval certain types of promotional material designed to reach a public audience through mass media. This material must be submitted 10 days prior to first use.
Promotional materials requiring NFA pre-approval include:
- Audio or video advertisem*nts that include specific trading recommendations or refer to or describe the extent of profit obtained in the past or that can be achieved in the future.
- Promotional material relating to Security Futures Products.
NFA will perform reviews of such submissions within 10 days of receipt.
Voluntary Pre-Review Program
NFA assists Members in achieving their regulatory requirements withNFA Compliance Rule 2-29 by offering a Pre-Review Program. This voluntary program is available free of charge to Members whose promotional material has not yet been used. NFA will perform a review of the promotional material within 14 days of receipt and will discuss any comments about the submission with the Member.
Submitting Promotional Material to NFA
Promotional material must be submitted using NFA's Promotional Material Filing System. Promotional material may only be filed by individuals with access to file promotional material on behalf of the Member.
Promotional material submissions must be submitted to NFA for review by a firm representative who has been designated to file promotional material on behalf of the Member by its security manager.
For more information, please refer to: A Guide to Communications with the Public and Promotional Material.
FAQs
Remember, the best sales practices involve a customer-centric approach, effective communication, and a focus on meeting the customer's needs. By following these practices, you can improve your sales performance and build strong, long-lasting relationships with your customers.
How do you answer "How do you promote sales?"? ›
B2B and B2C sales promotions can use several techniques, such as:
- Competitions and giveaways. ...
- Flash sale or limited-time price reduction. ...
- Bundling of products or services. ...
- Free trial or demo. ...
- Limited-time free shipping or transfer between platforms or services. ...
- Limited-time freebies. ...
- First purchase coupon.
A Member must keep all promotional material on file for 5 years from the date of last use and have it readily accessible during the first 2 years of the five-year period. Review NFA Compliance Rule 2-29(f) and CFTC Regulation 1.31 for more guidance.
How would you make your sales promotion competition proof? ›
You can offer an 'introductory price,' available for a limited period only. By doing this, you will boost sales as people try to take advantage of the discounted price. You will also increase awareness about the new product and social proof.
What are 3 practical strategies in sales? ›
Proven sales strategies from top entrepreneurs and startups
- Set specific goals. ...
- Analyzing past sales. ...
- Commence by targeting small markets. ...
- Research, understand and help your customers. ...
- Listen to your prospects. ...
- Differentiate your company from your competitors. ...
- Embrace storytelling to sell. ...
- Be patient and negotiate.
NFA members not conducting any commodity interest business (meaning no derivatives or other CFTC-jurisdictional transactions) will be subject to a new semi-annual filing requirement and will be considered “inactive.” NFA members with a Member Questionnaire filing deadline of 1 November 2024, will be the first to comply ...
What does the NFA prohibit? ›
On June 26, 1934, Congress passed the National Firearms Act (NFA), since amended, to limit the availability of machine guns, short-barreled shotguns, short-barreled rifles, sound suppressors (silencers), and other similar weapons that were often used by criminals during the Prohibition Era.
What are the rules of NFA? ›
The National Firearms Act of 1934 (NFA) requires the registration, with the federal government, of fully-automatic firearms (termed “machineguns”), rifles and shotguns that have an overall length under 26 inches, rifles with a barrel under 16 inches, shotguns with a barrel under 18 inches, and firearm sound suppressors ...
What are the two main components of sales promotion? ›
There are two types of sales promotions: consumer and trade. A consumer sales promotion targets the consumer or end-user buying the product, while a trade promotion focuses on organizational customers that can stimulate immediate sales.
What is the most common type of sales promotion? ›
Sales promotion strategies
Pull strategy: The pull strategy tries to get the customer to 'pull' the product away from the company, usually in the form of a discount, BOGO, or another special. This is the most commonly used strategy across the board for all businesses.
Related Definitions
Sales practices means any conduct or advertising by a developer or its agents to induce a person to buy or lease a lot.
How do you describe best practices? ›
A best practice is a standard or set of guidelines that is known to produce good outcomes if followed. Best practices are related to how to carry out a task or configure something. Strict best practice guidelines may be set by a governing body or may be internal to an organization.
What is a good answer for why sales? ›
Why do you want to work in sales? Answer: "I believe that sales is the backbone of any successful business. It allows me to interact with people, understand their needs, and provide solutions. I am motivated by the challenge of meeting targets and building relationships with customers.
What are the 7 key selling habits all sales professionals must develop? ›
There are seven key selling habits you must develop as a sales expert. They are prospecting, establishing rapport, identifying needs, presenting solutions, answering objections, closing the sale and getting resales and referrals.
