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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 300. Temporary Licenses
RULE 301. TEMPORARY LICENSING OF ASSOCIATED PERSONS.
[Adopted effective April 4, 1988. Effective dates of amendments: June 8, 1988; June 30, 1992; September 21, 1993; June 7, 1996; January 6, 1999; May 31, 2002 and September 15, 2017.]
(1) Notwithstanding any other provisions of these Rules, and pursuant to the terms and conditions of this Rule, NFA may grant a temporary license ("TL") to any applicant for registration as an AP whose registration is not suspended or revoked upon the filing with NFA of a properly completed Form 8-R.
(2) Temporary Licensing Upon Transfer of Associated Person Registration. Except as provided in Rule 207, NFA shall grant a TL to any applicant for registration as an AP upon the filing of a Form 8-R if as of the date the Form 8-R is filed:
(A) the applicant has been hired or is otherwise employed by the sponsor;
(B) the applicant's registration with a previous sponsor as an AP has terminated no more than 60 days prior to the date the sponsor files the Form 8-R;
(C) the applicant's registration is not revoked or suspended;
(D) the new sponsor has received a copy of the notice of the institution of:
(i) any pending proceeding that was brought against the applicant under: Sections 6(c), 6(d), 6c, 6d, 8a or 9 of the Act; CFTC Regulations 3.55 or 3.60; or NFA or exchange rules; or
(ii) any proceeding that was instituted in accordance with the procedures provided in CFTC Regulation 3.51 or Part 500 of these Rules and, within the prior 12 months, resulted in the Commission or NFA permitting the withdrawal of such person's application for registration in any capacity;
(E) if the applicant is subject to a Commission or NFA Order imposing conditions on the applicant's registration, the sponsor meets the requirements set forth in Rule 509(b)(5); and
(F) (1) the applicant has satisfied the applicable proficiency requirements in Part 400 of these Rules; or
(2) the Form 8-R contains the representation that the applicant has taken one of the examinations to satisfy the applicable proficiency requirements in Part 400 of these Rules.
(c) Restrictions Upon Activities.
An applicant for registration as an AP who has received notification that a TL has been granted may act in the capacity of an AP subject to all CFTC rules, regulations, orders and all NFA requirements.
(d) Termination of a TL.
(1) A TL shall terminate:
(A) immediately upon notice to the applicant's sponsor that, within 20 days following the date the TL is issued:
(1) NFA has not received the applicant's fingerprint card, if required;
(2) the sponsor does not meet the requirements regarding sponsorship of a registrant subject to conditions set forth in Rule 509(b)(5), if applicable;
(3) NFA has not received the required registration fee pursuant to Rule 203(a), if required;
(4) NFA has not received satisfactory evidence that the applicant has satisfied the applicable proficiency requirements in Part 400 of these Rules, if required; or
(5) the applicant has failed to verify the information contained in the Form 8-R, if required;
(B) immediately upon termination of the association of the applicant with the registrant which filed the Form 8-R;
(C) upon failure of an applicant's sponsor or an applicant to respond to NFA's written or electronic request for clarification of application information or to submit or resubmit fingerprints in accordance with such request;
(D) upon the revocation or withdrawal of the registration of the applicant's sponsor; or
(E) upon notice to the applicant's sponsor that:
(i) the applicant failed to comply with an award in an arbitration proceeding conducted pursuant to CFTC Rule 166.5 within the time permitted for such compliance as specified in Section 10(g) of NFA's Code of Arbitration or the comparable time period specified in the rules of a contract market, SEF or other appropriate arbitration forum;
(ii) the applicant failed to pay the full amount of a reparations order within the time permitted under Section 14(f) of the Act;
(iii) the applicant failed to comply with an order to pay a civil monetary penalty, restitution or disgorgement within the time permitted under Sections 6(e), 6b or 6c(d) of the Act;
(iv) the applicant failed to disclose relevant disciplinary information in response to the disciplinary information questions on the Form 8-R; or
(v) subsequent to the filing of the Form 8-R, an event has occurred that requires an affirmative response by the applicant to the disciplinary information questions in the Form 8-R; or
(F) five days after service upon the applicant of a notice by NFA pursuant to Rule 504 that the applicant may be disqualified from registration under Sections 8a(2) through 8a(4) of the Act.
(1) Upon termination of a TL, the applicant may not engage in any activity which requires registration with the Commission as an AP.
(e) Relationship to Registration and Membership.
(1) A TL shall not be deemed to be a registration or to confer any right to such registration.
(2) The granting of a TL shall constitute the granting of NFA associate membership if the applicant's sponsor is an NFA Member.
(3) Termination of a TL will affect NFA membership as described in Bylaw 301(h).
(4) Unless a TL has been terminated, a TL shall become a registration with the Commission upon the earlier of:
(A) a determination by NFA that the applicant is qualified for registration as an AP; or
(B) the expiration of six months from the date of its issuance unless NFA has issued a notice pursuant to Rule 504 that the applicant may be disqualified from registration under Sections 8a(2) through 8a(4) of the Act.