Futures and forex firms have a continuing obligation to diligently supervise their employees and agents in all aspects of their futures-related and forex-related activities.  Look it up in NFA Compliance Rules 2-9 (futures) and 2-39 by reference to 2-36 (forex).  Given the differences in the size and complexity of the operations of NFA Members, the regulator allows for some degree of flexibility in determining what constitutes “diligent supervision” for each firm - and Member implement whatever form of supervision works for them. That said, all Members are expected to regularly review the adequacy of their supervisory procedures.

        Self-Examination Questionnaires.  To satisfy their continuing supervisory responsibilities under Compliance Rules 2-9, 2-36 and 2-39, NFA Members must review their operations on a yearly basis using NFA’s Self-Examination Questionnaire, which consists of 2 parts:

• a general questionnaire that must be completed by all Members;  and,
• five supplemental questionnaires for each catetory- i.e., futures commission merchants (FCM);  forex dealer member (FDM);  introducing broker (IB);  commodity pool operator (CPO);  and, commodity trading advisor (CTA).

The questionnaires focus on the Member’s regulatory responsibilities and solicit information re: whether the Member’s internal procedures are adequate for meeting these responsibilities.  The completed annual questionnaires must be signed and dated by an appropriate supervisory person, attesting they he or she has reviewed the Member’s operations in light of the matters covered by the questionnaire.  One attestation is necessary per office, no matter how many supplemental questionnaires - although a separate attestation is needed for each branch office and, if the branch office reviews its own operations, then the main office must receive a copy of the questionnaire's signed attestation. 

        2011 Revisions.  First, a supplemental questionnaire was added for FDM's operations.  Other sections were updated to require all Members engaging in forex transactions to review their forex operations.  The self-examination documents were changed from a checklist format to a questionnaire format.  NFA added CFTC and NFA rule references throughout the questionnaire.  Finally, appendices were removed and made into separate documents.

For the complete set of questionnaires and supplements, go to:  [NFA Library of Publications]