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Compliance Rules

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


[Adopted effective September 30, 1992. Effective date of amendments: January 28, 1994; August 21, 2001; December 9, 2005; December 17, 2007; and July 9, 2013.]

(a) No Member shall allow an Associate to be a branch office manager unless:

    (1) The Associate has taken and passed the NFA Branch Manager Examination, provided, however, that any Associate who subsequently ceases acting as a branch manager will not be required to retake and pass the examination in order to resume acting as a branch manager unless after acting as a branch manager the Associate was not registered in any capacity for a period of more than two years; or

    (2) The Associate is sponsored by a registered broker-dealer and is qualified to act as a branch office manager under the rules of either the New York Stock Exchange or the Financial Industry Regulatory Authority.

      (b) Each Member registered as a broker-dealer under Section 15(b)(11) of the Exchange Act must have at least one designated security futures principal. No such Member shall designate a person as a security futures principal unless:

        (1) The person is a partner, officer, director, branch office manager or supervisory employee of the Member;

        (2) The person is a Member or an Associate of the Member as defined in Bylaw 301(b); and

        (3) The person has taken and passed the "NFA Branch Manager Examination."