Sep 27, 2021 | News

Branch Office Revisions for Commodity Pools, CTAs, Introducing Brokers, and FCMs

NFAs Branch Office requirements requires each CPO, CTA, FCM, RFED, and IB Member to list branch offices.  Due to the COVID-19 Pandemic, the NFA provided relief from certain branch office requirements for Members that permitted their registered APs to work remotely from locations that had not been listed as branch offices.  This still remains in effect.

NFA recognizes Members may permanently adopt a hybrid work environment that permits APs to work remotely and therefore has amended its definition of Branch Office. The definition excludes any remote working location or flexible shared workspace where one or more APs from the same household live or rent/lease provided the following:

  • The AP(s) does not hold the location out publicly as the Member’s office
  • The AP(s) does not meet with customers or physically handle customer funds at the location
  • Any CFTC or NFA-required records created at the remote location are accessible at the firm’s main or applicable branch office as required under CFTC and NFA requirements

Members may delist locations currently identified as branch offices if they fall outside the amended definition.

Per NFA Compliance Rules 2-9(a) and 2-36(e)(1), all NFA Members are required to diligently supervise their employees and agents in all aspects of their commodity interest and forex activities.  Therefore, you must ensure that there is appropriate supervisory procedures in place and that they are followed.

The details of this amendment can be found here.