Promotional Material In Foreign Exchange Compliance

In this article we are going to discuss about the guidelines which must be followed in promotional material in foreign exchange compliance category. The given details below outline all the important points stated by the regulatory authority in regards to the promotional material in forex compliance. Let us take a look to know more in detail.

• The promotional material in forex compliance guidelines state that there must be well written procedures in place for the supervision of the creation and use of promotional material in foreign exchange compliance.

• There should be a well qualified staff comprising of a an officer, general partner, sole proprietor, branch office manager or other supervisory employee other than the individual who prepared the material to approve promotional material before its use.

• There should be a written review and approve of any kind of promotional material in foreign exchange compliance.

• There should be a proper record maintained for a period of five years from the date last used in case of kind of promotional materials used.

• Proper supporting documentation for all statements, claims and performance results need to be maintained.

• There must be written documents in which all the statement of the risk of loss if the material mentions the possibility of profit, along with the presentation of past performance results be included.

• All the advertisements whether radio or television which make any specific recommendations or refer to or describe the degree of any profit obtained in the past or that can be achieved in the future to the concerned authority review team for its review and approval at least ten days before its first use.

• The use of any kind of promotional material is prohibited which contains the following:

talking about claims regarding seasonal trades, historical price moves, movements that are characterized as conservative estimates when in fact such price movements would be dramatic, containing profit projections, cherry picked trades and mathematical examples of leverage as a means of suggesting that prospective customers are likely to earn large profits from trading.

• It must be ensured that the employees and agents are not buying any leads from non-members required to be registered or using fraudulent advertising practices.