Sep 27, 2024 It is hard to believe that September has come and gone already. Going into the third quarter, one of Turnkey Trading Partners’ annual traditions is providing all our readers with a checklist for ongoing annual compliance obligations. At this time we also highlight new rules or interpretations that should be considered for the future. This year, both the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) introduced several new regulatory and compliance changes. Additionally, they have intensified their enforcement efforts, particularly around communications supervision, cybersecurity, and third-party service provider monitoring and ongoing due diligence obligations. One of the more impactful changes for registrants (which Turnkey feels is very misguided) will take effect on October 15th and alters how annual filings must be entered into NFA’s online registration system (ORS). Turnkey wrote about this in an earlier article for reference. Regardless of our opinion or that of the industry, these changes are most likely here to stay. Be sure to update ORS prior to October 15 or the annual questionnaire cannot be filed going forward. With all this in mind please take this opportunity to review our list of compliance obligations. If you have any questions or feel that you are not meeting the obligations, Turnkey is here to help. Contact us today. General NFA Annual Compliance Obligations: Review and update your Compliance Manual, as needed but must be done at least once annually Send annual privacy notice to customers (consider any policy changes). For Introducing Brokers (IBs), update and obtain new FCM AML reliance agreements if being utilized. Complete the NFA’s Annual Questionnaire. Starting October 15 must be done by an AP/Principal of the firm. Pay NFA dues and update all registration for form 7R (firm) and confirm no changes to APs form 8R (individual) Complete the NFA Self-Examination Questionnaire for your main and branch offices. Make sure this has been documented and attested to. Complete Self-Examination Questionnaire Appendices as applicable Any offices where AP’s work remote from the listed main office location must be documented, supervised, and evaluated Ensure branch and Guaranteed Introducing Broker (GIB) locations have been audited within the calendar year (Turnkey can help!) All GIB and Branch locations must be visited onsite at least once every other year; ensure onsite has been conducted. Conduct necessary employee training, including Anti-Money Laundering (AML), Ethics, Cybersecurity, and Identity Theft. Consider additional ongoing education obligations for other regulatory needs such as market regulation, electronic communication supervision etc. Test your Cybersecurity and Business Continuity and Disaster Recovery (BCDR) Plan, making any needed updates. Ensure Third-Party Service Provider Policies have been reviewed and all vendor profiles updated at least annually Reconsider firm AML policies and if is necessary for your registration type be sure an independent AML audit has been conducted. Conduct Website Review, if applicable. Put the review and approval in writing and keep on file. Update all other promotional approvals. For Commodity Pool Operators (CPO) be sure to update PPM within twelve months of last update (or if material changes have occurred) For Commodity Trading Advisors (CTA) be sure to update disclosure documents within twelve months (or as material changes occur) Document all ongoing electronic and written communications reviews Ensure all communication records are retained and on file to support communication reviews NFA expects communication reviews to be conducted at least monthly For other obligations and considerations consider calling Turnkey to speak with a representative today! If you have any questions or need assistance with your compliance program, contact Turnkey at (312) 324-0040 or click here. Our team is available to conduct mock audits and other various types of reviews in order to help ensure 2025 is your strongest year of compliance yet.