NFA Issues Interpretive Notice on CTAs Trading Primarily in Securities (with Lofchie Comment)
The NFA issued an interpretive notice regarding NFA Rule 402 ("Waiver of Testing Requirement"), granting the Vice President of Registration and Membership the authority to waive the Series 3 examination for certain individuals associated with CTAs who are required to register solely because their securities advisory services include advice on the use of futures and options for risk management purposes.
Lofchie Comment: It is so refreshing to see a regulator take action to reduce the duplicative regulation that results from the fact that we have two regulators, the SEC and the CFTC, both promulgating rules governing essentially the same activities, in this case, investment advice.