LEGAL CORNER: Do You Still Know-Your-Customers? You Better.

On January 3, 2011, amendments will become effective to NFA Compliance Rule 2-30, commonly referred to as the Know-Your-Customer Rule. (See also NFA website and Notice to Members I -10-15 dated July 28, 2010).  Hopefully, everyone is well versed with the current rule which requires NFA Members to obtain information about their customers and provide appropriate risk disclosures. Note, however, that the forthcoming amendments will broaden your responsibilities. The changes to the Rule can be summarized as follows:  The Rule will soon apply not just to individual customers, but ALL non-ECP customers;  FCM Members must annually request that active customers…

The full article is available to active NIBA members only.

Please login or sign up to read the rest.
Log In Register