Feb 26, 2026 What Happened in the Spartan Asset Group LLC Case In February 2026, the Hearing Panel of the National Futures Association (NFA) accepted an offer that permanently removed Spartan Asset Group LLC and its sole principal from NFA membership. Turnkey Trading Partners is not a law firm and cannot provide legal advice; we are simply commenting on the facts as presented on the NFA’s website and the decisions made by the Hearing Panel. More importantly, we do not wish anyone to lose membership, and we view this as an unfortunate outcome for any business or business owner. Our goal in sharing this article is to provide practical guidance on compliance & to help CTAs and associated persons understand Rule 2-29 and avoid similar pitfalls — not to single anyone out or assign blame. With that said, we will present the facts as published in this case in order to inform the remainder of this article. The underlying Complaint alleged violations of NFA Compliance Rule 2-29, including: Failure to label hypothetical performance as hypothetical Failure to include the prescribed disclaimer regarding the limitations of hypothetical results Failure to disclose material assumptions used in preparing hypothetical results Failure to include risk-of-loss discussion alongside references to profit Failure to state that past performance is not necessarily indicative of future results Inability to demonstrate that presented performance was representative of actual accounts The result was not a temporary suspension. It was not a fine with remediation. It was a permanent exit from NFA membership — with no ability to return as a Member, Principal, or Associate in the future. And at the center of it all was NFA Rule 2-29. Why Rule 2-29 Is So Serious Many CTAs fall into the trap of thinking promotional material compliance is just a disclosure exercise — that it’s simply about checking boxes, adding disclaimers, including a few risk statements, or labeling something “hypothetical,” rather than fully understanding that the NFA is looking at how the marketing actually represents performance, risk, and assumptions. The Spartan case is a clear example of what can happen when these obligations are not fully met: Rule 2-29 is an enforcement trigger, and when performance marketing is misleading, unbalanced, undocumented, or improperly presented, NFA views it as a direct threat to market integrity and customer protection. At Turnkey, we see this all the time in NFA exams: auditing promotional material is straightforward because you either have the required disclaimers and risk disclosures, or you don’t, and you can either show the math behind hypothetical returns, or you can’t. That is why Rule 2-29 violations frequently escalate beyond comment letters into formal complaints — and in repeat or serious cases, permanent removal from the industry. What Rule 2-29 Actually Regulates Rule 2-29 governs how NFA Members and Associates present: Profit claims Past performance Hypothetical or simulated performance Numerical performance data Risk disclosures Representativeness of results If you are showing performance in any format — website, pitch deck, tear sheet, newsletter, email — you are operating under Rule 2-29. The Core Provisions Every CTA Must Understand 1. Profit Discussion Must Include Equally Prominent Risk Disclosure (2-29(b)(3)) You cannot discuss potential profits unless you also provide an equally prominent discussion of risk of loss. If gains are highlighted and risk is minimized, buried, or visually subordinated, NFA may view the material as unbalanced. Promotional content must not create the impression that profit is likely while risk is theoretical. 2. Past Performance Must Include the Required Disclaimer (2-29(b)(4)) Any reference to actual past trading profits must clearly state: “Past performance is not necessarily indicative of future results.” This language is mandatory. 3. Performance Must Be Representative (2-29(b)(5)) If you present specific numerical performance results, they must: Represent the performance of all reasonably comparable accounts Be demonstrable to NFA upon request Be supported by reliable records, such as broker statements Cherry-picking accounts or presenting reconstructed figures without proper support can lead to enforcement exposure. 4. Hypothetical Performance Requires the Prescribed Disclaimer (2-29(c)(1)) If you use hypothetical or simulated results, you must include the NFA-prescribed disclaimer addressing the limitations of hypothetical trading.This is not customizable marketing language. It must meet NFA standards. 5. Material Assumptions Must Be Disclosed (2-29(c)(5)) When presenting hypothetical results, you must disclose material assumptions, including: Initial investment amount Commission charges Management fees Incentive fees Whether profits were reinvested How performance was calculated A spreadsheet alone is not sufficient. Transparency around construction of results is required. The Hidden Risk for CTAs Many firms focus compliance resources on: Trade allocation Custody Disclosure documents Registration status But promotional material is often where enforcement begins. A revised website page. A performance update. A marketing email. If compliance review is not embedded into your marketing workflow, Rule 2-29 risk becomes structural. The Spartan case demonstrates that repeated deficiencies — especially after prior regulatory attention — can transform a disclosure issue into a membership-ending event. The Bottom Line Rule 2-29 is not a technical formatting rule. It is a substantive standard governing how performance is communicated to the market. For CTAs and associated persons, inaccurate or unbalanced promotional material is not just a compliance oversight — it can be existential. The Spartan case is a reminder that in the futures industry, marketing performance is regulated conduct. And when Rule 2-29 is violated repeatedly, the consequences can be permanent. At Turnkey, we go beyond traditional consulting. We review pitch decks and websites, conduct mock audits, and guide firms through NFA audits, helping resolve any issues that arise. We also educate teams on compliance rules and what the NFA expects, leveraging our experience supporting 10–15 audits simultaneously. While we typically do not endorse hypothetical performance, we provide actionable, practical guidance to help registrants navigate complex regulatory requirements with confidence. For more information on how we can assist your firm, please give us a call at 312-324-0040 or contact us here.