NFA to Ease Branch Office Supervisor Rules

The NFA proposed amending its rules on branch offices to allow a single manager to supervise more than one branch office and to supervise remotely, on a full or part-time basis, where a member firm can show the arrangement is appropriate.

Under the proposed amendments to Notice 9002 ("Registration Requirements: Branch Offices") a member that assigns a manager to oversee multiple branches, or to supervise remotely, must adopt supervisory procedures reasonably designed to ensure effective oversight of associated persons at each location. A member must also tailor policies to any remote supervisory arrangement and reassess whether a manager can still supervise effectively if the firm becomes aware of misconduct involving a branch office.

The NFA said the changes align its branch-office-manager requirements with those of FINRA, reducing the burden on members registered with both. 

The amendments would be effective 10 days after the CFTC receives the submission, unless the agency decides to further review the proposal for approval.