RegAlert2012-12-11 | CFTC Staff Letter 12-49Added · Updated
No-Action Relief: Alternative to Fingerprinting to Establish Fitness of Principals Residing Outside the United States
The Division of Swap Dealer and Intermediary Oversight will not recommend enforcement action against registrants who substitute a certified criminal history background check for fingerprint cards for Non-U.S. Principals. Registrants must submit a Form 8-R with a certification that a reputable commercial service conducted a check revealing no disqualifying matters under Sections 8a(2) or 8a(3) of the Commodity Exchange Act, and must notify the National Futures Association within 30 days of filing. The registrant is required to maintain records of the check and results in accordance with Commission Regulation 1.31.
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U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-6700
Facsimile: (202) 418-5547 gbarnett@cftc.gov
Division of Swap Dealer and
Intermediary Oversight
Gary Barnett
Director
CFTC Letter No. 12-49
No-Action
December 11, 2012
Division of Swap Dealer and Intermediary Oversight Re: No-Action Relief: Alternative to Fingerprinting to Establish Fitness of Principals Residing Outside the United States This letter is in response to requests from market participants received by the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission”) seeking relief from the fingerprinting requirement for principals of Commission registrants where those principals have not resided in the United States since reaching 18 years of age (“Non-U.S. Principals”). Except under certain specific circumstances, 1 Commission regulations require applicants for registration to submit the fingerprints of each natural person the applicant lists as a principal, and the fingerprints are used for the background fitness check for that principal. Commission Regulation 3.10(a)(2) requires that an application for registration submitted by a futures commission merchant, retail foreign exchange dealer, introducing broker, commodity pool operator, commodity trading advisor, swap dealer, major swap participant or leverage transaction merchant be accompanied by a Form 8-R for each natural-person who is a principal of the applicant, together with the fingerprints of that principal on a fingerprint card provided by the National Futures Association (“NFA”) for that purpose (the “Fingerprint Requirement”). NFA sends digital images of the fingerprints to the Federal Bureau of Investigation (“FBI”) to determine if the individual who submitted them has a criminal record. In the United States, review of fingerprints by the FBI has provided a reliable and geographically consistent means for discerning criminal background information. NFA has informed Division staff that the usefulness of the Fingerprint Requirement is significantly
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Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.