NFA updated its FAQs to address recently amended swaps proficiency requirements.

As previously covered, NFA amended (i) NFA Bylaw 301 and NFA Compliance Rule 2-24, and (ii) the Interpretive Notice relating to proficiency requirements for individuals engaged in swaps activities. Specifically, the amendments require that any individual engaged in swaps activities (whether registered as a swap firm intermediary or swap-associated person ("AP")), or simply acting as an AP of a swap dealer, satisfy NFA's Swaps Proficiency Requirements.

The swaps proficiency requirements will become effective on January 31, 2020. Individuals who are "approved as swap APs" at a futures commission merchant, introducing broker, CPO or CTA member firm, or are acting as APs at a swap dealer, on January 31, 2021 must have met the swaps proficiency requirements in order to remain approved as swap APs or continue as APs at a swap dealer following this date. These requirements, however, do not apply to certain individuals acting outside the United States as APs to non-U.S. counterparties.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.