NFA Rule 2-36(e)

Key requirements:

• FDMs must diligently supervise the forex-related activities of their employees and agents. Individuals with supervisory responsibilities must also properly carry out those duties.
• The NFA may require certain FDMs to adopt enhanced supervisory measures based on specified risk factors, such as:
  • the background of associated persons or principals; and
  • the level of commissions, fees, and other charges paid by customers.
• Firms may request a waiver from enhanced supervisory requirements if they can demonstrate that their existing supervisory procedures are effective.
• An NFA panel reviews waiver requests and issues a final decision based on written submissions.