NFA Proposes Changes to Bylaws on Qualifications for Public Directors

The NFA submitted to the CFTC proposed changes to bylaws related to the qualifications for public directors on the NFA's Board.

The proposed changes are intended to reinforce the absence of any conflict of interest between a director who represents the public and the director's relationship with the NFA's membership.

The NFA Board unanimously approved proposed amendments to Bylaw 517 ("Public Representatives") and Bylaw 705 ("Finance Committee"). The changes would:

• insert the term "decision-making" as a criterion, whereby, to qualify as a public representative of NFA, an individual must have no material relationship with NFA that might reasonably affect the independent judgment or decision-making of the public representative;
• include a director's immediate family members under the NFA Compensation provisions;
• add that an NFA President serves only as an ex officio, non-voting member of the Finance Committee.

The NFA invoked the "ten-day" provision of the CEA, making the following amendments to NFA Bylaw 517 and 705 effective as early as ten days after receipt of its submission to the CFTC.