On April 22, the Commodity Futures Trading Commission (CFTC) published a no-action letter providing guidance for futures commission merchants (FCMs) and introducing brokers (IBs) in connection with calculating the FCM’s or IB’s net capital under CFTC Regulation 1.17. Pursuant to the no-action letter, the CFTC will not bring an enforcement action against an FCM or IB who, subject to certain requirements, adds back to the FCM’s or IB’s capital the portion of any monies received, but is not required to return, pursuant to the Paycheck Protection Program (PPP). Likewise, an FCM or IB that also is a “small firm” member of the Financial Industry Regulatory Authority (FINRA) will be permitted to add back to the FCM’s or IB’s capital any accrued and unpaid FINRA annual assessment fees that are permitted to be deferred in accordance with FINRA’s guidance.
The CFTC’s no-action letter is available here.
FINRA’s annual assessment guidance is available on its COVID-19 frequently asked questions webpage, available here.