Security Futures Training - Instructions for NFA Members

Current futures registrants may not offer or sell, or supervise persons who offer or sell, security futures until they have met certain proficiency requirements. Associates of registered commodity trading advisors and commodity pool operators must meet these proficiency requirements before engaging in security futures activities requiring registration as an associated person for those firms. Current NFA Members and Associates may satisfy these proficiency requirements by taking a training program that covers the subject matter included in this outline.

 

NFA Members who are not members of FINRA should determine who qualifies to meet the proficiency requirements through training by reviewing NFA's Interpretive Notice regarding NFA Compliance Rules 2-7 and 2-24 and Registration Rule 401: Proficiency Requirements for Security Futures Products. FINRA members must follow FINRA rules.

 

This outline contains five modules. Each module must include the content listed in this outline for that module but does not have to follow the same order or format. Which modules are required depends on the Associate's registration status and whether the Associate will be a designated security futures principal. However, even the optional modules can be good refreshers, so the Member can decide whether to require its Associates to take those modules.

  • Futures registrants who are not also Series 7 or Series 42 registered must take Module 1. Module 1 is optional for securities registrants.
  • Securities registrants who are not also Series 3 or Series 33 registered must take Module 2. Module 2 is optional for futures registrants.
  • Everyone must take Module 3 and Module 4.
  • Persons who will be designated security futures principals (generally Series 4, Series 9/10, or Series 30) must take Module 5. Module 5 is optional for other registrants.