On Feb. 27, NFA proposed rule on member questionnaire obligations.
NFA proposed amendments to NFA Bylaw 301 and adoption of NFA Compliance Rule 2-52 and NFA Interpretive Notice 9082 on NFA member questionnaire requirements.
Rule Provisions
As part of NFA's membership application process and on at least an annual basis post-membership, all NFA members are required to complete NFA's member questionnaire.
Questionnaire is to be completed by member and submitted to the NFA within 30 days.
Provides critical and material information re a member's activities and operations.
Identifies those not conducting commodity interest business and considered inactive.
Questionnaire serves as a continuous source of data for NFA's risk monitoring systems.
Is a central resource when reviewing or performing member oversight responsibilities.
Current requirements related to the questionnaire are set forth in NFA Bylaw 301.
NFA Compliance Rule 2-52 requires annual submission; more often for in some cases.
Also sets forth specific requirements regarding who at the firm must review/submit it.
Interpretive notice provides more specific guidance to members re submitting and completing the member questionnaire, formerly known as the annual questionnaire.
Effectiveness
NFA intends to make rule 2-52 effective as early as ten days after submission.
New semi-annual filing requirement for inactive members will first impact firms with a Nov. 1, 2024 annual filing deadline, making 1st semi-annual filing due May 1, 2025.
Will display member's inactive status on BASIC profile for any member indicating on its questionnaire that is not conducting commodity interest business starting Oct. 15.
Encouraged members to identify the AP and/or principal who will review and submit the Questionnaire on the firm's behalf; will provide individual designation instructions.
Sep. 2024 NFA Effectiveness
On Sep. 26, 2024, NFA issued Notice I-24-16 to remind members of the upcoming effectiveness date of Oct. 15, 2024, for final NFA Rule 2-52 and related guidance.
Every member must assign enter and submit access to at least one qualified individual
Individuals currently designated to submit the questionnaire will no longer be able to submit the questionnaire beginning Oct. 15, 2024, unless assigned the needed access.
Regulators
NFA
Entity Types
B/D; CPO; CTA; Exch
Reference
Nt I-24-16, 9/26/2024; Nt I-24-10, 5/20/2024; PR, RF, 2/27/2024; Citation: NFA Rule 2-52;
