Compliance Rules

Part 2 - Rules Governing the Business Conduct of Members Registered with the Commission

RULE 2-24. QUALIFICATION TESTING OF ASSOCIATED PERSONS.

[Adopted effective May 4, 1984. Effective date of Amendments: January 1, 1990; September 9, 200; October 18, 2010 and January 31, 2020.]

(a) Testing Requirement.

(1) Subject to the provisions of paragraphs (d) and (e) of Bylaw 301, no FCM, RFED, IB, CPO, CTA or LTM Member of NFA shall have associated with it (See Bylaw 301(b)) any person who has not satisfied the applicable proficiency requirements set forth in Registration Rule 401.

(2) Subject to the provisions of paragraphs (d) and (e) of Bylaw 301, no FCM, IB, CPO or CTA Member of NFA shall have associated with it (See Bylaw 301(b)) any person engaging in activity involving swaps subject to the jurisdiction of the Commission who has not satisfied NFA's Swaps Proficiency Requirements set forth in Bylaw 301(l) and the related Interpretive Notice entitled Proficiency Requirements for Swap APs.

(3) No SD or MSP shall have associated with it any person who is an associated person as defined in subsection 6 of the Associated Person definition under CFTC Regulation 1.3 who has not satisfied NFA's Swaps Proficiency Requirements set forth in the Interpretive Notice entitled Proficiency Requirements for Swap APs.

(b) Limitations on Activities.

(i) No person registered with NFA as an Associate of an NFA Member (See Bylaw 301(b)) who has satisfied the requirements of Registration Rule 401 by the use of an alternative to the National Commodity Futures Examination (Series 3) that requires the person to limit their futures-related activities may exceed such limits.

(ii) No Member of NFA shall have associated with it (See Bylaw 301(b)) any person who has satisfied the requirements of Registration Rule 401 by the use of an alternative to the National Commodity Futures Examination (Series 3) that requires the person to limit their futures-related activities and who exceeds such limits.