Interpretive Notices

9056 - NFA COMPLIANCE RULE 2-6: CONDUCTING COMMODITY INTEREST BUSINESS WITH AN EXPELLED OR SUSPENDED MEMBER OR ASSOCIATE

(Board of Directors, May 19, 2005; effective July 20, 2005 and July 1, 2019)

INTERPRETIVE NOTICE

In the last several years, NFA has encountered several instances where brokers, who have been barred from NFA membership or affiliation as a result of an NFA disciplinary action, have continued to work at a Member firm. NFA Compliance Rule 2-6 addresses this situation (as well as situations where the broker has been suspended or subjected to a similar sanction that temporarily prohibits the person from being an NFA Member or Associate) by specifically prohibiting an FCM, IB, CPO or CTA Member, FDM or Associate from maintaining an affiliation with or permitting any such person to perform any activities for, on behalf of or in connection with its commodity interest business. This prohibition applies regardless of whether the person's affiliation or activities require registration or NFA membership and continues throughout the period the sanction is in effect unless an exception is authorized by the Business Conduct Committee, Hearing Committee or the Appeals Committee.

Under Compliance Rule 2-6, FCM, IB, CPO or CTA Members and FDMs are also prohibited from having such persons acting for or on behalf of the firm in connection with its commodity interest business, including as employees, consultants, independent contractors, agents or unpaid volunteers. Moreover, absent extraordinary circumstances, FCM, IB, CPO or CTA Members and FDMs should not have such persons physically present in their offices.