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Amendments to Compliance Rule 2-46. CPO and CTA Reporting Requirements
June 30, 2017— Amendments to Compliance Rule 2-46. and new NFA Interpretive Notice NFA Compliance Rule 2-46: Reporting Financial Information on NFA Forms PQR and PR. An explanation of the amendments and Interpretive Notice can be found in the September 6, 2016 rule submission letter.
Part 200. Registration Requirements and Procedures
RULE 206. REGISTRATION OF ASSOCIATED PERSONS OF FUTURES COMMISSION MERCHANTS, INTRODUCING BROKERS, COMMODITY POOL OPERATORS, COMMODITY TRADING ADVISORS AND LEVERAGE TRANSACTION MERCHANTS.
[Adopted effective April 4, 1988. Effective dates of amendments: January 1, 1990; September 21, 1993; June 7, 1996; May 31, 2002; September 30, 2010; and November 7, 2010.]
(a) Application for Registration.
(1) (A) Except as provided in Rule 207, the sponsor of each individual applying for registration as an AP of that sponsor must:
(i) file a Form 8-R on behalf of the applicant, completed and filed in accordance with all pertinent instructions;
(ii) pay the registration fee required by Rule 203(a); and
(iii) file the fingerprints of the applicant on a fingerprint card provided by NFA for that purpose.
(B) The applicant must verify the completeness and accuracy of information contained in the application that the sponsor files on his behalf.
(2) The provisions of paragraphs (a)(1)(A) (ii) and (iii) and (a)(1)(B) of this Rule shall not apply to an applicant who has a current active status at the time the sponsor files his Form 8-R.
(3) When NFA determines that an applicant for registration as an AP appears fit for such registration and receives satisfactory evidence that the applicant satisfies the proficiency requirements set forth in Part 400 of these Rules, NFA will provide notification to the applicant's sponsor that the applicant's registration as an AP is granted contingent upon the sponsor hiring or otherwise employing the applicant as an AP within 30 days.
(b) Special Registration Procedures When Previous Sponsor's Registration Ceases.
(1) Any person whose registration as an AP in any capacity was terminated within the preceding 60 days because the previous sponsor's registration was revoked or withdrawn, and who becomes associated with a new sponsor, will be registered as an AP of such new sponsor upon the mailing by that new sponsor to NFA of an Acknowledgement of Conditioned Registration, if applicable, and written certifications stating:
(A) that such person has been hired or is otherwise employed by that sponsor;
(B) that such person's registration as an AP in any capacity is not suspended or revoked;
(C) that such person is eligible to be registered in accordance with this paragraph (b);
(D) whether there is pending against such person an adjudicatory proceeding brought under: (i) Sections 6(c), 6(d), 6c, 6d, 8a or 9 of the Act; (ii) CFTC Regulations 3.55 or 3.60; or (iii) NFA or exchange rules or, if within the preceding 12 months, the Commission or NFA has permitted the withdrawal of an application for registration in any capacity after instituting the procedures provided in CFTC Regulation 3.51 or Part 500 of these Rules and, if so, that the sponsor has been given a copy of the notice of the institution of a proceeding in connection therewith;
(E) that the new sponsor has received a copy of the notice of the institution of a proceeding if the applicant for registration has certified, in accordance with paragraph (b)(1)(D) of this Rule, that there is a proceeding pending against him as described in that paragraph or that the Commission or NFA has permitted the withdrawal of an application for registration as described in that paragraph;
(F) that the Disciplinary Information section of such person's registration application contains no "yes" answers, or none except those arising from a matter which already has been disclosed in connection with a previous application for registration in any capacity if such registration was granted, or which was disclosed more than 30 days previously in an amendment to such application; and
(G) that the new sponsor will be responsible for supervising all activities of the person in connection with the sponsor's business as a registrant under the Act.
(2) The certifications required by paragraphs (b)(1)(A), (E) and (G) of this Rule must be signed and dated by an officer of the sponsoring corporation, a general partner of the sponsoring partnership or the sponsoring sole proprietor. The certifications required by paragraphs (b)(1)(B), (C), (D) and (F) of this Rule must be signed and dated by the applicant for registration as an AP.
(3) Upon receipt of notice from NFA, a person who is registered in accordance with the provisions of paragraph (b)(1) of this Rule shall be required to file with NFA his fingerprints on a fingerprint card provided by NFA for that purpose as well as such other information as NFA may require. NFA may require such a filing every two years or at such greater period of time as it may deem appropriate, after the AP has become associated with a new sponsor in connection with the requirements of paragraph (b)(1) of this Rule.
(c) Withdrawal of Application. Failure of an applicant or of a sponsor of an applicant to respond to a written or electronic request by NFA for clarification of application information, to submit or resubmit fingerprints in accordance with such request, or to pay the required registration fee pursuant to Rule 203(a)(1) shall be deemed to constitute a withdrawal of the applicant's Form 8-R and shall result in the immediate termination of the applicant's temporary license, and NFA shall notify the sponsor accordingly.
(d) Duration of Registration. A person registered in accordance with paragraphs (a) or (b) of this Rule, Rule 207 or Rule 301(e) and whose registration has not been revoked, shall continue to be so registered until the revocation or withdrawal of the registration of each of the registrant's sponsors, or until the cessation of the association of the registrant with each of his sponsors. Such person will be prohibited from engaging in activities requiring registration under the Act or from representing himself to be a registrant under the Act or the representative or agent of any registrant during the pendency of any suspension of his or his sponsor's registration. Each of the registrant's sponsors must file a notice in accordance with Rule 214 reporting the termination of the association of the AP.