NFA's Logo
Home > FAQs > Compliance > Bylaw 1101-Doing Business WIth Non-Members > Will my firm violate Bylaw 1101 if it accepts...

Will my firm violate Bylaw 1101 if it accepts third party checks for deposit into a customer's account?

It depends on the circumstances. For example, if you receive checks from several individuals for the same account, the person whose name is on the account may be acting as an unregistered FCM or CPO. Before accepting a third party check for a customer account, you should carefully review the reason for the deposit, ask why the account is receiving a third party check, and assess the relationship between the parties. If you accept the deposit, you should document both the reason for accepting it and the steps you took to investigate the situation.

NFA is the premier independent provider of efficient and innovative regulatory programs that safeguard the integrity of the derivatives markets.
Site Index | Contact NFA | News Center | FAQs | Career Opportunities | Industry Links | Home
© National Futures Association All Rights Reserved. | Disclaimer and Privacy Policy