Human Resources & Talent Development Flashcards

Which form is used to register a principal or associated person (AP) of an NFA member futures firm?

Answer: Form 8-R

Form 8-R is the NFA registration form for principals and APs, while Form 7-R registers the firm itself.

Which form does a firm file with NFA to report the termination of an AP's association with the firm?

Answer: Form 8-T

Form 8-T is the termination notice filed when an AP or principal leaves the firm.

A newly hired salesperson has applied for AP registration but NFA has not yet granted it. What may the person NOT do?

Answer: Solicit customer orders for futures

Soliciting orders requires the person to be registered as an AP first.

Which CFTC regulation requires registrants to diligently supervise their employees and agents?

Answer: Regulation 166.3

CFTC Regulation 166.3 imposes the duty to diligently supervise the handling of commodity accounts.

Under CFTC Regulation 1.31, how long must most required books and records generally be kept?

Answer: 5 years

Required records must be kept for five years, with the first two years readily accessible.

Which category of employee generally does NOT need to register as an AP?

Answer: A person performing purely clerical duties

Clerical personnel who do not solicit or supervise solicitation are generally exempt from AP registration.

What does NFA Compliance Rule 2-9 primarily require of a member firm?

Answer: Diligent supervision of employees and agents

Rule 2-9 requires members to diligently supervise their employees and agents in all aspects of their futures activities.