All exempt CPOs and CTAs have until March 2, 2020 to complete the affirmation process. However, because it may be difficult for NFA members to conclusively determine whether a previously exempt CPO or CTA continues to be eligible for their current exemption, they will not be in violation if reasonable steps are taken to determine registration and membership status between January 1 and April 1, 2020.
There are two ways NFA Members can review exemption information.
- Members can review individual persons or entities by navigating NFA’s Basic System here, and viewing “all” in the Firm Exemptions box and/or the Pools & Pool Exemptions box. The page should reflect an affirmation date if a proper notice was filed affirming an exemption. Or, there will be a withdrawal date if the person or entity has withdrawn the exemption.
- Members may also access a spreadsheet that includes a list of all persons or entities that have exemptions on file with NFA. This spreadsheet is updated on a daily basis. Each entity will have an affirmation due date. If the affirmation due date is March 2, 2020, the exemption has not yet been affirmed. If the affirmation due date has changed to March 1, 2021 then the exemption for the year has been established.
Failure to obtain written notice of why an entity has not affirmed their exemption could be in violation of NFA Bylaw 1101 or Compliance Rule 2-36(d).
Annual Introducing Broker Requirements
- Review ISSP/Cyber Security Program
- Pay NFA Dues on registration anniversary date
- Complete the Annual Questionnaire on the IB’s membership anniversary date
- When notified via NFA’s Dashboard, complete the electronic Annual Registration Update
- Complete the Self-Examination Questionnaire
- Submit financial reports to NFA
- The FCM that carries the IBs customer accounts will be contacting customers at a minimum to verify information obtained under NFA Compliance Rule 2-30(c) remains materially accurate and allows for any needed corrections.
- Annual onsite inspection of every Branch Office and the supervision of operations
- Test Disaster Recovery Plan
- Provide annual Ethics Training
- Conduct annual Anti-money laundering (AML) training for relevant employees
- Complete an audit of AML Procedures and training
Annual Commodity Pool Requirements
- Review Cybersecurity/ISSP
- Pay Dues on registration anniversary date
- Complete the Annual Questionnaire on the CPO anniversary date
- Complete the Annual Registration Update when notified through NFA’s Dashboard
- Complete the Self-Exam Questionnaire
- Distribute a Disclosure Document to any new clients that is not more than 12 months old
- Submit annual pool financial statements to NFA and distribute to pool participants
- File any new exemptions or affirm applicable pool exemptions through NFA’s Exemption System
- Annual onsite inspection of every Branch Office
- Test the Disaster Recovery Plan
- Provide ethics training as outlined in CPO’s written ethics procedures
Annual Commodity Trading Advisor Requirements
- Pay NFA dues on CTA’s registration anniversary date
- Complete the NFA’s Annual Questionnaire on the anniversary date
- Complete the Annual Registration Update
- Complete the NFA’s Self-Examination Questionnaire
- Distribute a Disclosure Document that is no more than 12 months from the document’s date and has been accepted by the NFA.
- Quarterly trading program review when placing bunched orders to ensure that the order allocation method has been fair and equitable and document the analysis
- File an annual report required by CFTC Reg 4.27 if directing trading of commodity interests.
- File any new or affirm any existing exemptions via NFA’s Exemption system.
- The FCM carrying CTA’s customer accounts will contact the CTA’s customers annually at a minimum to verify that the information obtained under NFA Compliance Rule 2-30(c) remains materially accurate.
- Conduct an annual onsite inspection of every Branch Office.
- Test disaster recovery plan
- Provide ethics training as outlined in the CTA’s written ethics training training procedures
If you need assistance or guidance on any of your annual requirements, please contact Mike Coglianese at 630-461-5841 or email email@example.com.