FINRA Series 3 Free Practice Questions 52

According to NFA Rule 2-8, Neither Member or Associate shall exercise discretion over a customer’s commodity futures account unless the customer or account controller has allowed the Member or Associate, in writing (by power of attorney) to exercise such discretion.

According to NFA Rule 2-8, The Member or Associate does not need written authorization to exercise discretion about time and price only.

According to NFA Rule 2-8, the following conditions must be fulfilled by the member whos initiating discretionary trade:
(A) That ensures that a member's partner, agent, administrator, branch manager or supervisory employee periodically checks discretionary 
    trading activity.
(B) A designated Security Futures Principal monitors discretionary security futures trading activity regularly when a Member is 
    registered as a broker-dealer.
(C) Which require such partner, officer, manager, branch office manager or a supervisory employee or designated security future manager to 
    record in writing that such review procedures have been carried out.
(D) The discretionary trading activity must be regularly reviewed, and a written record of the review must be made.

According to NFA Rule 2-8, No Member FCM or IB shall allow an Associate to exercise discretion over a customer’s commodity futures account unless the Associate has been continuously registered under the Act for at least two years and worked for that period in that registered capacity.

According to NFA Rule 2-8, No Member FCM or IB shall allow an Associate to exercise discretion over a customer’s commodity futures account unless the Associate has been continuously registered under the Act for at least two years and has been operating for that time in such registered capacity. No person registered as a CTA shall be subject to this provision.

According to NFA Rule 2-8, No FCM or IB shall accept an order from a third party, not an FCM or IB member, without first obtaining a copy of the written trading authorization of the account controller or the customer’s written acknowledgment that such authorization has been granted.

According to NFA Rule2-10, each Member subject to minimum capital requirements must:
(A) Prepare financial reports needed to be sent in English to the CFTC and/or NFA using U.S. dollars and U.S. accounting standards.
(B) Maintain a general ledger in English using U.S. dollars.

According to NFA Rule 2-10, Each FCM/IB must:
(A) Documents, extension requests and other documents required to be sent in English to the CFTC and/or NFA.
(B) Maintain English translations of all foreign-language promotional material.
(C) Maintain written procedures required by CFTC or NFA rules in English.
(D) Provide English translations of other foreign-language documents and records and file financial information when requested by NFA.

According to NFA Rule 2-11, No Member FCM, unless a member of a contract market, shall carry customer accounts without prior notice to NFA.

According to NFA Rule 2-38, The project shall be fairly designed to enable the Member to continue to operate, resume operations, or move their business to another Member with minimal disruption to their customers, other Members, and futures markets for commodities.