# SERIES 30 CRAM SHEET — NFA Branch Manager

**50 questions · 1 hour · 70% to pass · Prerequisite: Series 3 passed**

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## SUPERVISORY FRAMEWORK (NFA Rule 2-9)

1. **Foundational rule:** diligently supervise employees and agents in commodity-related activities (2-9(a))
2. **Written Supervisory Procedures (WSPs):** review at least ANNUALLY, document the review
3. **AML compliance program (2-9(c)) 4 pillars:** AML Officer + written program + training + independent testing
4. **Customer Identification Program (CIP):** name, DOB, address, government ID
5. **Branch office registration:** required where APs solicit; OSJ designation = supervisory branch

## RECORDKEEPING (CFTC §1.31)

6. **Retention:** 5 YEARS total, FIRST 2 readily accessible
7. **Format:** electronic OK if accessible without barriers
8. **Open to inspection by:** CFTC, NFA, DOJ on request
9. **Order time-stamping (§1.35):** RECEIPT and EXECUTION/REPORT
10. **Bunched orders (§1.35(b)(5)):** pre-determined fair allocation methodology, disclosed to customers, applied ASAP

## CUSTOMER ACCOUNT HANDLING

11. **Risk Disclosure (§1.55):** at/before account opening, written acknowledgment
12. **Customer info (NFA 2-30):** occupation, income, net worth, age, prior trading experience
13. **Discretionary authority (NFA 2-8):** 2 years AP registration + WRITTEN customer authorization + supervising principal approval
14. **Customer funds segregation (§1.20-1.30):** NEVER commingled, qualified depositories, daily reporting
15. **Customer checks:** payable to FCM only, NEVER to AP personally
16. **Third-party orders:** no execution without written discretionary or trading authorization

## COMMUNICATIONS (NFA Rule 2-29)

17. Communications must be balanced, fair, not misleading
18. **Hypothetical performance:** PERMITTED with required disclosures (limitations, hypothetical, no actual trading, hindsight bias)
19. **Guarantees of profit:** PROHIBITED
20. **Promotional materials:** maintained per recordkeeping rules
21. **Testimonials:** require disclosures (compensated, typicality of results)

## SALES PRACTICES & EVENTS

22. **NFA 2-46:** report specified events to NFA promptly — bankruptcy, regulatory actions, criminal indictments, civil actions alleging misconduct, certain customer arbitrations
23. **Customer complaints:** maintain in complaint file with response and any settlement
24. **Trade errors:** document immediately, escalate per WSPs, error-correction procedures govern who absorbs loss

## TRADING PRACTICES

25. **Wash trades:** prearranged, false volume — PROHIBITED
26. **Front-running:** trading ahead of customer orders — PROHIBITED
27. **Bucketing:** taking other side of customer order without disclosure — PROHIBITED
28. **Pre-arranged trading:** PROHIBITED (distinct from legitimate spread/cross trades)
29. **Daily price limits:** halt mechanism; locked-limit days = no trading at limit
30. **Fast Market designation:** exchange relieved of strict price-reporting obligations

## REGISTRATION CATEGORIES

31. **AP (Associated Person):** Series 3 + sponsorship by NFA Member
32. **FCM:** holds customer funds, full clearing capability
33. **Independent IB:** meets minimum financial requirements
34. **Guaranteed IB (GIB):** guaranteed by ONE FCM, exempt from minimum financials, can solicit only for that FCM
35. **CTA:** advises others on futures trading
36. **CPO:** operates a fund/pool

## BRANCH MANAGER RESPONSIBILITIES

37. **Active supervision:** review trading, communications, complaints, exceptions
38. **WSP enforcement:** implement, train, monitor
39. **Document everything:** time-stamped reviews, signed-off exceptions
40. **Report up:** specified events to NFA, internal escalations to compliance/CCO
41. **Remote workers:** supervise under WSPs; verify branch registration if location triggers
42. **Trade error procedures:** documented + applied consistently
43. **Customer fund verification:** ensure segregation, daily checks
44. **Communications oversight:** review promotional materials, social media, email
45. **AML program:** designate Officer, run training, run independent tests

## COMMON GOTCHAS

- "**Customer funds**" → segregation is HARD rule. MF Global was a famous violation.
- "**Hypothetical results**" PERMITTED with disclosures vs. "**Guarantees**" PROHIBITED always
- "**WSP review**" = AT LEAST annually, more often if business/regulatory changes
- "**Bunched order allocation**" → fair + equitable + PRE-DETERMINED + DISCLOSED
- **Series 30 is a NARROW exam** — heavy on supervision (2-9), recordkeeping (§1.31), customer info (2-30), and communications (2-29). Memorize these 4.
- **No suitability standard** like FINRA — futures uses calibrated DISCLOSURE based on customer info

## TEST-DAY PROTOCOL

- 50 questions, 1 hour → ~70 sec/question (slower than Series 3 since fewer questions)
- Branch Manager scenarios → think like a SUPERVISOR, not a salesperson
- "What should the firm do?" or "What must the AP not do?" — these scenario questions are common
- For ambiguous answers, pick the OPTION THAT REQUIRES THE MOST PROTECTION FOR THE CUSTOMER (almost always correct)

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## VETTED:

Content cross-referenced against:
- NFA Series 30 Examination Outline
- NFA Compliance Rules 2-4, 2-8, 2-9, 2-29, 2-30, 2-46 (https://www.nfa.futures.org/rulebook/)
- CFTC 17 CFR Parts 1.20-1.31, 1.35, 1.55 (https://www.ecfr.gov/current/title-17)
- BSA / Patriot Act AML requirements

**Note:** Series 30 builds DIRECTLY on Series 3 content. If Series 3 is solid (95%+), Series 30 should pass with one focused study cycle. Differences: less market mechanics, more supervisory + recordkeeping + sales practice rules.