CFTC Issues No-Action Relief Providing an Alternative to Fingerprinting to Establish Fitness of Associated Persons Residing Outside the U.S. (with Lofchie Comment)

The CFTC's Division of Swap Dealer and Intermediary Oversight (DSIO) announced the issuance of a No-Action Letter related to the fingerprinting requirement under CFTC Rule 3.12 for certain associated persons of CFTC registrants.

The No-Action Letter responds to a request from the NFA for relief from the fingerprinting requirement for associated persons of CFTC registrants where the associated persons have not resided in the United States since reaching 18 years of age. The No-Action Letter provides that DSIO will not recommend that the CFTC commence an enforcement action against a sponsoring FCM, RFED, IB, CPO, CTA, or leverage transaction merchant based solely upon the failure to submit a fingerprint card with a Form 8-R on behalf of a Non-U.S. Associated Person provided they meet certain specifications. The No-Action Letter further advises that DSIO intends to continue to explore alternatives to the fingerprinting requirement in the context of Non-U.S. Associated Persons.

Lofchie Comment: This relief was a long time coming, given that the problem was well-known and straightforward.

See: CFTC Letter 13-29.See also: CFTC Letter 12-49.Related News: "CFTC Issues No-Action Relief Providing an Alternative to Fingerprinting to Establish Fitness of Principals Residing Outside the United States" (December 11, 2013).