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Wed, 15 Sep 2017— Amendments to Bylaw 301. An explanation of the amendments and Interpretive Notice can be found in the August 30, 2017 rule submission letter.
Wed, 15 Sep 2017— Amendments to Registration Rules. An explanation of the amendments and Interpretive Notice can be found in the August 30, 2017 rule submission letter.
Wed, 15 Sep 2017— Amendments to Compliance Rule 2-9: NFA Interpretive Notice NFA Compliance Rule 2-9: Special Supervisory Requirements for Members Registered as Broker Dealers Under Section 15(b)(11) of the Securities Exchange Act of 1934. An explanation of the amendments and Interpretive Notice can be found in the August 30, 2017 rule submission letter.
Part 200. Registration Requirements and Procedures
RULE 207. MULTIPLE ASSOCIATIONS.
[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 July 18, 2012.]
(a) Except as otherwise provided for in paragraph (d) of this Rule, any person whose application for registration as an AP is pending or who is temporarily licensed or registered as an AP and whose registration is not subject to conditions may become registered as an AP of another sponsor ("new sponsor") if the new sponsor (who must meet the requirements set forth in Rule 509(b)(5)) files a Form 8-R on behalf of the applicant with NFA in accordance with all pertinent instructions.
(b) (1) The applicant will be registered as an AP of the new sponsor upon the filing of the Form 8-R by the new sponsor in accordance with paragraph (a) of this Rule if the applicant is currently registered as an AP with another sponsor and if:
(A) the applicant has satisfied the applicable proficiency requirements in Part 400 of these Rules; or
(B) the Form 8-R filed by the new sponsor contains the representation that the applicant has taken one of the examinations to satisfy the applicable proficiency requirements in Part 400 of these Rules.
(2) NFA shall notify each of the current sponsors of the AP that the AP is applying for registration as an AP with a new sponsor.
(3) Each sponsor is responsible for supervising the AP. In addition, the new sponsor and each sponsor to whom NFA provides notice of the AP's application for registration with multiple sponsors shall be jointly and severally liable for the conduct of the AP with respect to any customers common to it and any other sponsor of the AP for the:
(A) solicitation or acceptance of customer orders; solicitation of funds, securities or property for a participation in a commodity pool;
(B) solicitation of a client's or prospective client's discretionary account;
(C) solicitation or acceptance of leverage customer orders for leverage transactions; and
(D) AP's supervision of any person or persons engaged in any of the foregoing solicitations or acceptances.
(4) Each sponsor shall remain jointly responsible in accordance with paragraph (b)(3) of this Rule until the individual is no longer associated with the sponsor as an AP and the sponsor files the Form 8-T required by Rule 206(d) and Rule 214 or the individual is no longer associated with multiple sponsors as an AP.
(c) Upon receipt of notice from NFA, an individual who is simultaneously associated with more than one sponsor in accordance with the provisions of paragraphs (a) and (b) 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 may be required. Such a filing may be required every two years or at such greater period of time as NFA deems appropriate after the AP has become associated with a new sponsor in accordance with the requirements of paragraphs (a) and (b) of this Rule.
(d) If an individual is associated with an FCM, RFED, or an IB and he directs customers seeking a managed account to use the services of a CTA(s) approved by the FCM, RFED, or IB and all such customers' accounts solicited or accepted by that AP are carried by the FCM or RFED or introduced by the IB with which the AP is associated, such individual shall be deemed to be associated solely with the FCM, RFED, or IB and may not also register as an AP of the CTA(s).
(e) Any individual seeking an exemption from the requirements of this Rule must file a petition with the Commission in accordance with Commission Regulation 3.12.