NFA proposed amendments to NFA Notice 9002 - Registration Requirements; Branch Offices that would modify the definition of "branch office" to exclude certain locations that are part of a hybrid work-from-home environment. NFA stated that the amendments are meant to reflect the operational changes resulting from the COVID-19 pandemic.
The proposed amended definition of "branch office" would exclude "locations where one or more APs [associated persons] from the same household live or rent/lease the location," if:
- the location is not held open to the public as the member firm's office would be;
- the location is not used for the purpose of in-person customer meetings or the physical handling of customer funds; and
- all CFTC and NFA-required records that are made in the location can be accessed at the member firm's main office or the relevant branch office pursuant to CFTC Rule 1.31 ("Regulatory records; retention and production") and NFA Compliance Rule 2-10 ("Recordkeeping").
NFA stated that member firms can decategorize branch office locations that are not considered as such under the amended definition.
Barring further review by the CFTC, the proposed amendment will go into effect 10 days after it is received by the CFTC.
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