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.