Series 3 - National Commodities Futures

AAA

Regulations - Member Responsibility Actions

Member Responsibility Actions (MRAs)
Hearings are the usual means for dealing with run-of-the-mill malfeasance. These quasi-judicial procedures are time-consuming, though, and there are exigent circumstances when the NFA president must take immediate action. A member responsibility action (MRA) is the NFA's rarely invoked executive fast path to dealing with bad behavior.

An NFA member or registered AP may be summarily suspended from membership, or otherwise be directed to take remedial action if the NFA president, with the concurrence of the NFA Board of Directors or Executive Committee, has reason to believe that the summary action is necessary to protect the commodity futures markets, customers, or other members or APs.

Penalties For Violators
The NFA's Business Conduct Committee or its designated panels may, at the conclusion of the disciplinary proceeding, impose one or more of the following penalties:

  • permanent expulsion, or suspension for a specified period, from NFA membership;
  • permanent barring, or suspension for a specified period, from association with a specific NFA member;
  • censure or reprimand;
  • a monetary fine not to exceed $250,000 per violation;
  • an order to cease and desist; or
  • any other fitting penalty or remedial action.
Summary And Review
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