NFA Updates FAQs Concerning New Swaps Proficiency Requirements

NFA updated its FAQs to address recently amended swaps proficiency requirements.

As previously covered, NFA amended (i) NFA Bylaw 301 and NFA Compliance Rule 2-24, and (ii) the Interpretive Notice relating to proficiency requirements for individuals engaged in swaps activities. Specifically, the amendments require that any individual engaged in swaps activities (whether registered as a swap firm intermediary or swap-associated person ("AP")), or simply acting as an AP of a swap dealer, satisfy NFA's Swaps Proficiency Requirements.

The swaps proficiency requirements will become effective on January 31, 2020. Individuals who are "approved as swap APs" at a futures commission merchant, introducing broker, CPO or CTA member firm, or are acting as APs at a swap dealer, on January 31, 2021 must have met the swaps proficiency requirements in order to remain approved as swap APs or continue as APs at a swap dealer following this date. These requirements, however, do not