CFTC Extends Targeted Relief to Market Participants in Response to COVID-19
July 21st | 2020
The CFTC has extended the time period for the targeted no-action relief provided in CFTC Staff Letter No. 20-16 to September 30, 2020, which means registrants listing new principals and applicants for registration as associated persons (APs) will not be required to submit a fingerprint card for any such principal or AP registration applicant as long as they comply with the conditions of the staff letter.
From now until September 30, 2020, or until such earlier date as the National Futures Association (NFA) notifies the public that it has resumed the processing of fingerprints, a fingerprint card for a newly-listed principal or an applicant for AP registration need not be submitted; provided that:
The registrant or applicant for registration listing such principal, or sponsoring such applicant for AP registration, causes a criminal history background check of such principal or applicant for AP registration to be performed;
The criminal history background check is of a type that would reveal matters constituting statutory disqualification from registration, and it does not reveal any such matters, other than those disclosed in the person’s Form 8-R;
A person with authority to bind the registrant or applicant for registration listing such principal, or sponsoring such applicant for AP registration, signs and submits a certification that the background check was completed and that it did not disclose any matters that constitute a statutory disqualification; and
The registrant or applicant for registration listing such principal, or sponsoring such applicant for AP registration, maintains records documenting the completion and the results of the criminal history background check in accordance with Regulation 1.31.
Principals and APs of registrants and applicants for registration relying upon the relief provided in the staff letter will still be required to submit their fingerprints to NFA within 30 days of NFA’s public announcement of its resumption of fingerprint processing.