Annual FCM and RFED Requirements
National Futures Association has always been committed to providing our Members with the resources they need to meet their regulatory obligations as efficiently as possible. Although no list can capture all of a Member's regulatory responsibilities, there are certain requirements that may not be part of your day-to-day operations. Below is a listing of certain requirements you have for the upcoming year. Again, this list does not capture all of your responsibilities, but it should help remind you of certain non-routine requirements.
- Complete an Annual Questionnaire
- Complete the electronic Annual Registration Update
- Pay your NFA dues (including a $100 registration records maintenance fee for each category of registration) on the anniversary date of your firm's registration. See the Membership and Dues page for the current schedule of dues.
- Complete NFA's Self-Examination Questionnaire
- Submit daily and monthly financial information
- Conduct Anti-Money Laundering ("AML") training for relevant employees and complete an audit of your AML procedures and training.
- Review your Point of Contact information for USA PATRIOT Act 314(a) information requests and notify NFA of any changes (FCMs only).
- Supervise the operations of any GIBs and/or Branch Offices, including conducting an annual onsite inspection of every GIB and Branch Office.
- Contact active customers who are individuals, at least annually, to verify that the information obtained from that customer under NFA Compliance Rule 2-30(c) remains materially accurate, and provide the customer with an opportunity to correct and complete the information. If the customer notifies you of any material changes to the information, assess whether additional risk disclosure is required to be provided to the customer based on the changed information. However, if another FCM or IB introduces the customer's account on a fully disclosed basis or a CTA directs trading in the account, then notify that Member of the changes to the customer's information.
- Test your Disaster Recovery Plan and make any necessary adjustments.
- Provide Ethics Training as outlined in your firm's written Ethics Training Procedures
- For FCMs, designate a Chief Compliance Officer (CCO) and ensure that person is listed as a principal of the FCM. The CCO is required to prepare an annual report as outlined in CFTC Regulation 3.3(e) and provide the report to the firm's senior management or the board of directors. CFTC Regulation 3.3 requires that the report be furnished to the CFTC electronically, not more than 90 days after the FCM's fiscal year-end. The annual report must also include a certification by the firm's CCO or CEO regarding the accuracy and completeness of the report. FCMs should use the WinJammer system™ to submit the report.
- For FCMs that offer FOREX to retail customers and RFEDs, provide written information regarding NFA's Background Affiliation Status Information Center (BASIC), including the web site address to every current customer (in addition to sending it to every new customer when the customer opens an account).
- For FCMs that offer FOREX to retail customers and RFEDs, review the security, capacity, credit and risk-management controls, and records provided by your electronic trading systems and certify that the requirements outlined in NFA Interpretive Notice 2-36(e) have been met. Prepare a certification, signed by a principal who is also a registered AP, and provide a hardcopy to NFA with the submission of your annual audited financial statement.
- Each Forex Dealer Member shall designate one principal to serve as Chief Compliance Officer (CCO). Each CCO must prepare an annual report that meets the requirements of CFTC Regulation 3.3(e) and must provide the annual report to the Forex Dealer Members Board of Directors or Senior Officer. Each Forex Dealer Member must submit the annual report to NFA within 60 days after the Forex Dealer Member's fiscal year end. The annual report must include a certification by the Forex Dealer Member's CCO or chief executive officer that to the best of his or her knowledge and reasonable belief, and under penalty of law, the information contained in the annual report is accurate and complete.