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The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight today provided no-action relief to futures commission merchants (FCMs) and introducing brokers (IBs) to streamline the process for providing risk disclosure statements to non-institutional customers (i.e., customers that are not “eligible contract participants” as defined under the section 1a(18) of the Commodity Exchange Act).
Specifically, the no-action letter permits FCMs and IBs to provide non-institutional customers with a single risk disclosure document that consolidates the separate risk disclosure statements required by Regulations 1.55, 30.6, 33.7 and/or 190.10.
The use of a single, combined risk disclosure statement containing the same material information currently required in several risk disclosure statements will provide greater efficiency to the marketplace and potentially less confusion to customers.
- RELATED LINKS
- CFTC Staff Letter 16-82
- FIA Combined Disclosure Statement
