1. During the course of an NFA audit, when an item is noted in the audit report, how is that viewed internally by NFA? This depends on a number of factors. The purpose of examinations is to review compliance with NFA rules and CFTC regulations. NFA’s philosophy has always been to provide education and direction to its members to ensure they understand their regulatory obligations. When instances of non-compliance are noted, firms are expected to come into compliance and demonstrate how it will be achieved. There are several factors NFA considers when evaluating examination findings: number of violations, repeat nature…