Historically, the National Futures Association (“NFA”) has conducted examinations of foreign Members remotely, from their offices in Chicago and New York. They did not travel overseas as a matter of policy. When the NFA added Swap Dealers to their Membership a few years ago, this policy seemed destined for change, as performing lengthy and complex reviews of Swap Dealers over email or via conference calls is neither effective nor feasible. Indeed, NFA staff began discussing possible changes to their overseas travel policy in late 2012. At that time, ACA began advising our Commodity Pool Operator (“CPO”) and Commodity Trading Adviser (“CTA”) clients based outside of the US (and those based in London, in particular) that the possibility of an on-site exam has never been greater. Still, we’ve not seen any on-site examinations of foreign CPOs or CTAs in subsequent years. Until now.
The NFA currently has an examination team in London to conduct a handful of routine CPO/CTA exams. In fact, one of our clients is currently preparing for such an exam, set to commence on Monday, September 14. Thus far, our client’s experience with the exam team has been consistent with that of our US-based clients in terms of logistics and scope. The NFA’s examination approach is well-known to our former NFA examiner consultants in ACA’s Commodity Futures Trading Commission and NFA Division. If you have any questions about NFA’s presence in London or their examination process, or if you would like to discuss engaging ACA for a mock NFA examination, please contact Rick Geissman or Scott Brindley in ACA’s New York office at +1-212-951-1030.