[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR3.21]

[Page 133-134]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 3_REGISTRATION--Table of Contents
 
                         Subpart A_Registration
 
Sec.  3.21  Exemption from fingerprinting requirement in certain cases.

    (a) Any person who is required by this part to submit a fingerprint 
card may file, or cause to be filed, in lieu of such card:
    (1) A legible, accurate and complete photocopy of a fingerprint card 
which has been submitted to the Federal Bureau of Investigation for 
identification and appropriate processing and of each report, record, 
and notation made available by the Federal Bureau of Investigation with 
respect to that fingerprint card if such identification and processing 
has been completed satisfactorily by the Federal Bureau of Investigation 
not more than ninety days prior to the filing with the National Futures 
Association of the photocopy; or
    (2) A statement that such person's application for initial 
registration in any capacity was granted within the preceding ninety 
days; Provided, That the provisions of paragraph (a)(2) shall not be 
applicable to any person who, by Commission rule, regulation, or order, 
was not required to file a fingerprint card in connection with such 
application for initial registration.
    (b) Each photocopy and statement filed in accordance with the 
provisions of paragraph (a)(1) or (a)(2) of this section must be signed 
and dated. Such

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signature shall constitute a certification by that individual that the 
photocopy or statement is accurate and complete and must be made by:
    (1) With respect to the fingerprints of an associated person. An 
officer, if the sponsor is a corporation, a general partner, if a 
partnership, or the sole proprietor, if a sole proprietorship;
    (2) With respect to fingerprints of a floor broker or floor trader. 
The applicant for registration; or
    (3) With respect to the fingerprints of a principal. An officer, if 
the futures commission merchant, commodity trading advisor, commodity 
pool operator, introducing broker, or leverage transaction merchant with 
which the principal will be affiliated is a corporation, a general 
partner, if a partnership, or the sole proprietor, if a sole 
proprietorship.
    (c) Outside directors. Any futures commission merchant, introducing 
broker, commodity trading advisor, commodity pool operator or leverage 
transaction merchant that has a principal who is a director but is not 
also an officer or employee of the firm may, in lieu of submitting a 
fingerprint card in accordance with the provisions of Sec. Sec.  
3.10(a)(2) and 3.31(a)(2), file a ``Notice Pursuant to Rule 3.21(c)'' 
with the National Futures Association. Such notice shall state, if true, 
that such outside director:
    (1) Is not engaged in:
    (i) The solicitation or acceptance of customers' orders,
    (ii) The solicitation of funds, securities or property for a 
participation in a commodity pool,
    (iii) The solicitation of a client's or prospective client's 
discretionary account,
    (iv) The solicitation or acceptance of leverage customers' orders 
for leverage transactions;
    (2) Does not regularly have access to the keeping, handling or 
processing of:
    (i) Commodity interest transactions;
    (ii) Customer funds, leverage customer funds, foreign futures or 
foreign options secured amount, or adjusted net capital; or
    (iii) The original books and records relating to the items described 
in paragraphs (c)(2)(i) and (c)(2)(ii) of this section; and
    (3) Does not have direct supervisory responsibility over persons 
engaged in the activities referred to in paragraphs (c)(1) and (c)(2) of 
this section; and
    (4) The Notice Pursuant to Rule 3.21(c) shall also include:
    (i) The name of the futures commission merchant, introducing broker, 
commodity trading advisor, commodity pool operator, leverage transaction 
merchant, or applicant for registration in any of these capacities of 
which the person is an outside director;
    (ii) The nature of the duties of the outside director for whom 
exemption under paragraph (c) of this section is sought;
    (iii) The internal controls used to ensure that the outside director 
for whom exemption under paragraph (c) of this section is sought does 
not have access to the keeping, handling or processing of the items 
described in paragraphs (c)(2)(i), (c)(2)(ii), and (c)(2)(iii) of this 
section; and
    (iv) The reasons why the outside director believes he should be 
exempted from the fingerprint requirement and why such an exemption 
would not be contrary to the public interest and the purposes of the 
provision from which exemption is sought.
    (d) A firm that has filed a Notice Pursuant to Rule 3.21(c) with 
respect to an outside director described therein must file with the 
National Futures Association on behalf of such outside director a Form 
8-R, completed in accordance with the instructions thereto and executed 
by the outside director. The exemption provided for in paragraph (c) of 
this section is limited solely to the outside director's fingerprint 
requirement and does not affect any other duties or responsibilities of 
the firm or the outside director under the Act or the rules set forth in 
this chapter. In appropriate cases, the Commission and the National 
Futures Association may require further information from the firm with 
respect to any outside director referred to in a Notice Pursuant to Rule 
3.21(c).

[48 FR 35297, Aug. 3, 1983, as amended at 49 FR 5525, Feb. 13, 1984; 54 
FR 19558, May 8, 1989; 57 FR 23148, June 2, 1992; 58 FR 19592, Apr. 15, 
1993; 66 FR 53518, Oct. 23, 2001]

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