Regulatory Notice 18-24

Update to Security Futures Risk Disclosure Statement and Supplement

Implementation Date: September 5, 2018

Summary

FINRA has released an updated Security Futures Risk Disclosure Statement to replace the one that was originally issued in 2002, and a new integrated supplement. The updated Security Futures Risk Disclosure Statement (Updated Statement) incorporates into the main body of the document the cumulative changes made to date. Among other changes, the Updated Statement reflects that the standard settlement cycle for most broker-dealer transactions is now two business days after the trade date (T+2) and the current cash limit protection of the Securities Investor Protection Corporation (SIPC). The new supplement (2018 Supplement) integrates, in a single supplement, all the disclosure updates made through prior supplements released in 2010 and 2014, and the updated disclosures described herein.

The implementation date of the Updated Statement and 2018 Supplement is September 5, 2018.

The Updated Statement and 2018 Supplement are set forth in Attachments A and B, respectively. These documents also are posted on FINRA’s website at http://www.finra.org/industry/security-futures.

Questions concerning this Notice should be directed to Sarah Kwak, Assistant General Counsel, Office of General Counsel, at (202) 728-8471