NFA Announces Effective Date for Supervision of Branch Offices and Guaranteed IBs
On October 8, the National Futures Association (NFA) issued Notice I-19-19 announcing the effective date of the updated Interpretive Notice Compliance Rule 2-9: Supervision of Branch Offices and Guaranteed IBs, which establishes minimum requirements that member firms should implement to supervise their branch offices and guaranteed introducing brokers’ (IB) compliance with certain regulatory requirements. The updated Interpretive Notice is effective January 1, 2020, although NFA members may act in reliance on the guidance immediately.
The update reflects advances in electronic trading, communications and other technologies, providing members with increased flexibility while continuing to subject branch offices and guaranteed IBs to robust supervision and regulatory requirements. The updated Interpretive Notice was discussed in greater detail in the May 24 edition of Corporate & Financial Weekly Digest.
Notice I-19-19 is available here.