The National Futures Association ("NFA") filed with the SEC proposed amendments to NFA Interpretive Notice Compliance Rules 2-9: Enhanced Supervisory Requirements. The NFA's amendments, which were first proposed to the CFTC in November 2017, are intended to create consistency between the requirements of the NFA and those of FINRA.
The Interpretive Notice requires firms that are subject to enhanced supervisory procedures (e.g., firms that employ a significant number of previously disciplined individuals) to record all telephone conversations between their associated persons ("APs") and existing or potential customers. Under the proposed amendments, firms would be required to maintain records of all electronic written communications between APs and customers. Firms would be required to maintain such records for a period of five years.
In addition, the NFA proposed a technical change to remove from the Interpretive Notice a reference to an obsolete form for reporting changes to registration information. This amendment was previously proposed to the CFTC.
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