September 18, 2020

Volume X, Number 262

September 18, 2020

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CFTC and NFA Issue Temporary No-Action Relief for Principal or Associated Person Listings/Registrations

On April 24, at the request of the National Futures Association (NFA), the staff of the Commodity Futures Trading Commission (CFTC) issued a no-action letter providing regulatory relief to principals of registrants and applicants for associated person (AP) registration with respect to submission of fingerprint cards. This relief extends through the earlier of (1) July 23 or (2) a public announcement by NFA indicating that it has resumed processing fingerprints. The relief is subject to certain conditions. In particular, the firm listing the principal or sponsoring the AP must certify to NFA that the firm has completed a background check of the affected individual and that no matters that constitute a disqualification under Sections 8a(2) or 8a(3) of the Commodity Exchange Act were found. In addition, the firm must maintain records documenting the completion and results of the background check. Finally, any affected individuals must submit required fingerprints to NFA within 30 days of NFA’s announcement that it has resumed processing them.

NFA has issued parallel relief with respect to its similar fingerprinting requirements.

The CFTC press release, including a link to the no-action letter, is available here. The corresponding NFA notice is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 122


About this Author

Kevin M. Foley, Finance Lawyer, Katten Llaw Firm

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.


Elizabeth Organ Financial Markets and Funds Katten Muchin Rosenman New York, NY

Elizabeth Organ represents clients across the financial services industry, with a focus on regulatory compliance and advice. Liz's background positions her to provide valuable legal counsel on transactional and regulatory matters relating to commodities and derivatives, investment management, and cryptoassets and distributed ledger products.

Helping clients address complex regulatory and legal challenges

Liz assists clients with a range of financial services regulatory matters, collaborating with legal staff, business executives and regulators alike to pursue favorable results for clients. She takes a pragmatic approach toward the provision of legal advice and seeks to address issues from multiple perspectives, including commercial considerations.

Liz holds a certification in Financial Risk Management (FRM) from the Global Association of Risk Professionals (GARP). As such, she has a deep, risk-management based understanding of the products and tools used by the financial services firms she advises.

Prior to joining Katten, Liz was an associate in the Financial Industry practice of a major international law firm, where her focus was on regulatory and transactional matters involving investment advisers, asset managers, and banks and other financial institutions.

While in law school, Liz served as an intern in the Division of Enforcement of the US Commodity Futures Trading Commission (CFTC) and in the Office of the Director of the Consumer Financial Protection Bureau. Prior to law school, she worked as a research analyst at the Federal Reserve Bank of Dallas and as a risk analyst at Energy Future Holdings.