Series 3 – The National Commodities Futures Test Communication & Stakeholder Engagement 4

Question 1

An introducing broker's customer asks where to send margin funds. What is the correct answer?

Accepted Answer

To the FCM carrying the account, payable to the FCM

Answer

An IB may not accept customer funds in its own name; they go to the carrying FCM.

Question 2

What must a CTA deliver to a prospective client before entering into an agreement?

Accepted Answer

A disclosure document, with a signed acknowledgment of receipt

Answer

Rule 4.31 requires delivery of the disclosure document and a signed acknowledgment.

Question 3

What is the maximum period a CPO or CTA disclosure document may be used after its date?

Accepted Answer

12 months

Answer

Disclosure documents may not be used more than 12 months after their date, and must be updated for material changes.

Question 4

Within what time must a commodity pool operator distribute the pool's annual report after the fiscal year end?

Accepted Answer

90 calendar days

Answer

Rule 4.22 requires distribution of the annual report within 90 calendar days of year end.

Question 5

Which person must be registered as an associate person (AP) to deal with the public at an FCM?

Accepted Answer

Anyone who solicits customer orders or accounts

Answer

Persons who solicit orders, customers, or customer funds must register as APs.

Series 3 – The National Commodities Futures Test Practice Test