NFA Issues Compliance Rule Update for Rule 2-7

The NFA has released a compliance rule update for Rule 2-7 ("Branch Office Managers and Designated Security Futures Principals").Rule 2-7 places limitations on who is permitted to be a branch office manager. In order to be a branch office manager, an Associate must:

• Have taken and passed the "NFA Branch Manager Examination," with the exception of Associates who are no longer acting as a branch manager, unless after acting as a branch manager the Associate was not registered in any capacity for a period of more than two years; or
• Is sponsored by a registered broker-dealer and is qualified to act as a branch office manager under the rules of either the NYSE or FINRA.

A broker-dealer registered under Section 15(b)(11) ("Registration by Notice of Security Futures Product Broker-Dealers") of the Exchange Act must have at least one designated security futures principal.

See: NFA Compliance Rule Update.