NFA Announces Extension of Relief from On-site Branch Inspections

Author

James Hickey

Publish Date

Type

Compliance Alert

Topics

  • Compliance

The National Futures Association (NFA) issued a Notice to Members on February 1, 2022, extending relief from performing on-site annual branch office inspections. The NFA had previously issued Notice to Members ( I-20-35 and I-21-25) relieving NFA Members from conducting on-site reviews due to COVID-19, allowing NFA Members to conduct the inspections remotely instead. This relief has now been extended through December 31, 2022.

The notice also states that NFA Members may conduct a remote inspection in 2023 if the Member conducts a risk assessment that deems it is appropriate to do so. This risk assessment must take into account when the Member last conducted an on-site inspection.

The NFA requires that any location, other than the main office and those excluded following NFA Notice to Member I-21-28, where an AP conducts activity requiring registration to be listed as a branch office on their Form 7-R. Each branch office needs to have a branch office manager who is required to pass the Series 30 proficiency requirement.

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ACA is prepared to support its clients with completing their NFA required branch office inspections as well as other compliance requirements set by the NFA and Commodity Futures Trading Commission (CFTC).

If you have any questions about this alert or how we can help your firm meet your compliance obligations, please reach out to your consultant or contact us below.

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