NFA Announces Waiver of Proficiency Exam Requirement in Connection with Certain Swaps Activities


On October 3, 2012, the National Futures Association (“NFA”) released a Notice to Members (the “Notice”) announcing amendments to NFA Bylaw 301 and Registration Rules 401 and 402, which provide for a swaps exemption from the proficiency examination requirement, and establish a process for designation as a “swaps firm” or “swaps associated person.” These developments are relevant to any fund manager that is registered or is preparing to register as a commodity pool operator (“CPO”) or commodity trading advisor (“CTA”) and engages in swaps activities. The full Notice can be accessed below. Our previous Alert discussing these amendments can be accessed below.

Swaps Exemption from the Proficiency Examination Requirement

In the Notice, the NFA announced that effective immediately, proficiency examination requirements will not apply to associated persons (“APs”) of registered CPOs and CTAs whose activities that are subject to Commodity Futures Trading Commission (“CFTC”) jurisdiction are limited to swaps.

Please see full alert below for more information.

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Published In: Administrative Agency Updates, Business Organization Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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