S3 - 1.5

Question 1

What is an AP

Answer 1

Associated Person - works for either a FCM, IB, CTA or CPO soliciting client orders and/or funds

Question 2

Another term for Associated Person

Answer 2

RCR (Registered Commodity Representative)

Question 3

How many NFA Members can AP be associated be with?

Answer 3

As many as are willing tom sponsor him (via 3-R form)

Question 4

What’s the` responsibility of a firm employing the services of an AP?

Answer 4

Firm is liable for APs actions

Question 5

Can AP claim qualifications are given to him by CFTC or NFA?

Answer 5

Nope

Question 6

What 2 things must AP advice clients of?

Answer 6

1) Potential of profit of the trade

2) Risk involved in the trade / transaction

Question 7

Which body of rules do APs follow?

Answer 7

Commodity Exchange Act

Question 8

What level is the CFTC, state or federal?

Answer 8

Federal

Question 9

Do both employing firm and AP need be registered?

Answer 9

Firm no, AP always

Question 10

Can a AP hold accounts with the FCM or IB?

Answer 10

Yes, but either FMC or IB must give permission in written to FCM carrying the AP’s account

Question 11

Who is under the regulation of the CBT (Chicago Board of Trade)?

Answer 11

APs and RCRs, domestic and foreign