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Items you need to improve and protect your FCM or IB...

1.   Very important and useful forms and letters for different applications for the FCM and the Introducing Broker.  Visit our "forms" page.

REGULATORY LETTERS AND FORMS FOR FCMs AND IBs

Investment Reference has several forms and letters for use in many different situations.  At times it's difficult to create the perfect form or letter to send to a customer, an FCM, an IB, or even for an AP in your office.

Important NOTE:  Each letter also comes with a detailed sheet outlining certain warnings of what to be careful of if you use the letter.  It could mean the difference between a failed or successful arbitration or law suit.

  • Aggressive trading letter:  This is the perfect letter for those customers who insist on day-trading, or multiple contract trade.   If you've ever been concerned that an aggressive customer may some day lose, then subsequently claim they didn't know they were "over-trading" their account, and decide to take you to arbitration, this is an ideal form for your protection. 

  • Customer rights letter:  You just hired an AP that worked for another firm.  The AP wishes to contact the customers that he or she brought into the market at their previous firm.  You have been warned of a law suit by that firm if this should occur.  What are your rights and the rights of your AP?  You may need this letter.

  • Disciplinary letter:  You've overheard one of your APs saying something "not-so-compliant" on the phone.  You don't know who the rep was talking with, it could have been a regulator, or a disgruntled customer or prospect.  If that person tapes the conversation and decides to complain to the NFA or CFTC, your AP, you and your firm could be in line for disciplinary action.  If you correct the situation, the chances of actions are lessened, (depending upon the severity of the infraction).  You should take some action, but want it to be stern but not destructive to your firm or the AP.  This is the letter format you should use.

  • Letter of direction:  If you have customers that want you to follow a software system for them and take every trade, but, for various reasons, don't want you calling them prior to each trade.  This letter (if acceptable to your FCM), can help you help your customer without having to take full discretion over the account.  This too requires further information in order to be done properly.  The letter itself is NOT enough.  You need our explanation to institute this procedure properly.

  • General release form:  If you decide to settle with a complaining customer, you need protection.  It has happened that a customer had settled with an IB, then, after more thought, decided to file a complaint with the regulators.  If the firm had insisted on a release letter from the customer this would not have happened, or if it did, the complaint and arbitration could have been better defended.  Don't think you are above this kind of activity.  This release is a necessity for your protection.

  • Incentive agreement letter:  Are you or one of your APs acting in the capacity of an exempt CTA?  Of course you filed the proper forms with the FCM to act in this capacity, but take the extra step of internal protection with this proclamation from the customer.  This letter will afford further protection from any action by the customer, as well as questions from the NFA.

  • Advertising and Promo compliance:  This is an informational description of NFA rule 2-29, in plain English.  This checklist will help you and your compliance person evaluate your advertising and promotional material to ensure its compliance. 

  • Order ticket form:  If you are not furnished order tickets by your FCM, you can spend hundreds or thousands of dollars printing order tickets that comply with NFA requirements.  Here is the simple solution to that problem.  You can create your own order tickets at a tiny fraction of the cost, but you must have the proper items on the ticket, and know how to use them.

If we don't have what you need listed here, call or email us and tell us what you are looking for.  We will create a compliant but powerful letter for your use.  Our fees are very reasonable in relation to the amount of money you may be saving.

Get in touch with us by email.

THERE IS RISK OF LOSS IN TRADING FUTURES...  LOTS OF IT!!

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Last modified: January 01, 2010