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Compliance Rules

Part 3 - Compliance Procedures


[Effective date of amendments: March 15, 1994; March 12, 1999 and August 31, 2020.]

(a) The Respondent must file a written Answer to the Complaint with NFA within 30 days from the date of the Complaint.

(b) The Answer shall respond to each allegation in the Complaint by admitting, denying or averring that the Respondent lacks sufficient knowledge or information to admit or deny the allegation. An averment of insufficient knowledge or information may be made only after a diligent effort has been made to ascertain the relevant facts, and shall be deemed to be a denial of the pertinent allegation. The failure to respond to any allegation shall be deemed an admission of that allegation.

(c) Failure to file a timely Answer shall be deemed an admission of the facts and legal conclusions contained in the Complaint, and a waiver of hearing. If a timely Answer is not filed, the Business Conduct Committee may issue a default decision. The Respondent may appeal a default decision to the Appeals Committee by filing a written notice of appeal with NFA within 15 days after the date of the default decision.

(d) For good cause shown, the Business Conduct Committee, or a Hearing Panel may waive the effects of failure to file a timely or complete Answer.

(e) On motion of the Respondent for good cause shown, then Chairman of the Business Conduct Committee, or another member of the Business Conduct Committee designated by the Chairman may grant an extension of time in which to comply with this Rule.