Associated Person

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An Associated Person[1] is an individual who solicits orders, customers or customer funds (or who supervises individuals engaged in these activities) on behalf of an Futures Commission Merchant, Introducing Broker, Commodity Trading Advisor or Commodity Pool Operator. An AP is, in effect, anyone who is a salesperson or who supervises salespersons for any of these categories of individuals or firms. The registration requirements apply to any person in the supervisory chain-of-command and not only to persons who directly supervise the solicitations of orders, customers or funds.

NFA Registration is generally required unless:

  • The individual is already registered as an FCM, IB or Floor Broker, or
  • The individual is already registered as a CPO if you are to be associated with a CPO, or
  • The individual is already registered as a CTA if you are to be associated with a CTA, or
  • The individual is already registered with the Financial Industry Regulatory Authority (FINRA) as a registered representative and limits futures activity to the solicitation of participations in a commodity pool, or

In certain instances where a firm's commodity interest activity accounts for no more than 10 percent of its annual revenue, the Chief Operating Officer, General Partner or other principal in the supervisory chain-of-command may be eligible for exemption from AP registration.

Registration requirements apply to any person in the supervisory chain-of-command and not only to persons who directly supervise the solicitations of orders, customers or funds.

Resources

References

  1. www.nfa.futures.org. National Futures Association, AP Registration.
  2. The AP Handbook. CME Group.