Customer Protection Rule Training

Employees involved in finance, treasury, operations, regulatory, compliance, settlement as well as other relevant officers and employees of the entities listed below are required to take annual Customer Protection training.

CFTC/NFA Customer Protection Rule Training Requirement Background

The CFTC’s Customer Protection Rule (17 CFR 1.11) requires FCMs to provide annual training to all finance, treasury, operations, regulatory, compliance, settlement, and other relevant officers and employees regarding the handling of customer funds, procedures for reporting suspected policy breaches, and consequences of failing to comply with these segregation requirements.

Participants Who Require Customer Protection Rule Education

  • Futures Commission Merchants (FCMs)
  • Self-Regulatory Organizations (SROs)
  • Designated Self-Regulatory Organizations (DSROs)
  • Derivatives Clearing Organizations (DCOs)

Customer Protection Rule Training Course Benefits

  • Receive proof of compliance certificate
  • Fulfills regulatory CPR training requirements
  • Educates staff on protection standards
  • Written by an expert CPR training provider

Customer Protection Rule Training Course

  • Course Type: Customer Protection Rule
  • Length of Course: Approximately 50 minutes; you may save your progress and return to the program as often as needed.
  • Price: Call for pricing; corporate volume discounts available.
  • Frequency: Recommended annually.
  • Course Outline And Provider Qualifications: Download PDF
  • What's Included: Interactive course delivered via secure LMS platform; course completion confirmation to trainee and firm; electronic record archiving; on-demand record retrieval.

Corporate pricing

Customer Protection Rule Requirements

  • Rule 17 CFR 1.11 Requirements

    The Risk Management Program for Futures Commission Merchants (17 CFR 1.11), also known as the Customer Protection Rule, requires clearing FCMs, among other obligations, to:

    • Establish, maintain and enforce a system of risk management policies and procedures.

    → Policies and procedures should be designed to monitor and manage the risks associated with the activities of the futures commission merchant. This includes risks associated with market, credit, liquidity, foreign currency, legal, operational, settlement, segregation, technology and capital. Policies must also include risk-tolerance limits and exceptions.

    • Maintain written risk management policies and procedures

    → The written policies and procedures must be furnished to the CFTC, the FCM’s self-regulatory organization and supervisory personnel of the FCM.

    • Have the risk management program and written policies approved in writing by the FCM’s governing body and distributed to supervisory personnel.

    → Governing body means the proprietor, if the futures commission merchant is a sole proprietorship; a general partner, if the futures commission merchant is a partnership; the board of directors if the futures commission merchant is a corporation; the chief executive officer, the chief financial officer, the manager, the managing member, or those members vested with the management authority if the futures commission merchant is a limited liability company or limited liability partnership.

    • Establish a risk management unit that provides quarterly reports to senior management.

    → The risk management unit must have sufficient authority; qualified personnel; and financial, operational, and other resources to carry out the risk management program. The risk management unit reports directly to senior management and must be independent from the business unit.