Self-Examination Questionnaire For FCMs, FDMs, IBs, CPOs and CTAs (Revision Notes)

In this revised version of the Self-Examination Questionnaire, NFA updated the Questionnaire to incorporate:

Substantive Revisions

Section: General Self-Examination Questionnaire for all members
Subsection: Supervision

• Added clarification on inspection of branch offices

In this revised version of the Self-Examination Questionnaire, NFA updated the Questionnaire to incorporate:

• Amendments to NFA Compliance Rule 2-46; and
• Clarification on calculating the quarterly ratios reported on the CPO Form PQR and CTA Form PR.

Substantive Revisions

Section: Supplemental Questionnaire for CPOs
Subsection: Financials

• Revised to reflect CPO Member requirements to file NFA Form PQR within 60 days of each calendar quarter end; and
• Added clarification on calculating the quarterly ratios reported on the CPO Form PQR.

Section: Supplemental Questionnaire for CTAs
Subsection: Financials

• Added clarification on calculating the quarterly ratios reported on the CTA Form PR.

In this revised version of the Self-Examination Questionnaire, NFA updated the Questionnaire to incorporate:

• NFA interpretive notice regarding Members' use of third-party service providers

Substantive Revisions

Section: General Self-Examination Questionnaire for All Members
Subsection: Use of Third-Party Service Providers

• Added to indicate that each Member outsourcing regulatory functions must adopt and implement a supervisory framework over its outsourcing function to mitigate outsourcing-related risks. (Interpretive Notice 9079)

In this revised version of the Self-Examination Questionnaire, NFA updated the Questionnaire to incorporate:

• CFTC's final rule adopting amendments to Form CPO-PQR for commodity pool operators

Substantive Revisions

Section: Supplemental Questionnaire for CPOs
Subsection: Financial

• Revised to reflect uniform quarterly reporting for CFTC Form CPO-PQR for all CPOs, regardless of assets under management; the elimination of substituted compliance for dually registered CPO investment advisers filing joint Form PF in lieu of CFTC Form CPO-PQR; and permitting CPOs to file NFA Form PQR in lieu of the revised CFTC Form CPO-PQR.

In this revised version of the Self-Examination Questionnaire, NFA updated the Questionnaire to incorporate amendments to:

• NFA Financial Requirements Section 11 and 12;
• NFA interpretive notice regarding supervision of branch offices and guaranteed IBs;
• NFA Compliance Rule 2-29 and 2-36 and related interpretive notices regarding communications with the public and promotional material; and
• NFA Compliance Rules 2-8 and 2-30 and related interpretive notices regarding bunched orders.

Substantive Revisions

• Revised to indicate that, under certain circumstances, a Member firm that supervises one or more branch offices and/or guaranteed IBs can perform an on-site inspection every other year, instead of every year. (Interpretive Notice 9019)

• Revised to clarify that the average pricing of a bunched order may be rounded to the next price increment as long as cash residuals greater than a penny are paid to relevant customers. (Interpretive Notice 9029)

Non-substantive Revisions

• Revised to reflect amendments to Interpretive Notice 9019.

• Revised to reflect amendments to NFA Compliance 2-29 and 2-36, and related interpretive notices.

• Combined previous E-mail subsection with previous Websites, Social Media and other Internet-Based Forums subsection along with relevant additions and deletions to reflect amendments to NFA Compliance Rule 2-29 and 2-36, and related interpretive notices.

• Revised to eliminate the approval request process for affiliates as NFA no longer allows the use of affiliates under NFA Financial Requirements Section 11.