Conflict of Interest Policies and Procedures by Future Commission Merchants and introducing Brokers

Forms and Documents

Document Name	Status
30-day Notice 2-1-16.pdf Supplementary Document	2016-02-01
60-day Notice 11-25-15.pdf Supplementary Document	2016-02-01
Final Supptg Statmt Renewal 3038-0078 - FCM and IB Conflicts 2-1-16.doc Supporting Statement A	2016-02-01

IC Document Collections

IC ID	Document Title	Status
195305	Conflict of Interest Polocies and Procedures by Futures Commission Merchants and introducting Brokers	Modified

ICR Details

OMB Control No: 3038-0078	ICR Reference No: 201601-3038-002
Status: Historical Active	Previous ICR Reference No: 201202-3038-006
Agency/Subagency: CFTC	Agency Tracking No:
Title: Conflict of Interest Policies and Procedures by Future Commission Merchants and introducing Brokers
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 05/15/2016
	Date Received in OIRA: 02/01/2016
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2019	36 Months From Approved	05/31/2016
Responses	117,132	0	155,144
Time Burden (Hours)	60,609	0	80,278
Cost Burden (Dollars)	0	0	8,027,800

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Abstract: On April 3, 2012, the Commission adopted Commission regulation 1.71 (Conflicts of interest policies and procedures by futures commission merchants and introducing brokers) pursuant to section 4d(c) of the Commodity Exchange Act (“CEA”). Commission regulation 1.71 requires generally that, among other things, futures commission merchants (“FCM”) and introducing brokers (“IB”) develop conflicts of interest procedures and disclosures, adopt and implement written policies and procedures reasonably designed to ensure compliance with their conflicts of interest and disclosure obligations, and maintain specified records related to those requirements. The Commission believes that the information collection obligations imposed by Commission regulation 1.71 are essential (i) to ensuring that FCMs and IBs develop and maintain the conflicts of interest systems, procedures and disclosures required by the CEA, and Commission regulations, and (ii) to the effective evaluation of these registrants’ actual compliance with the CEA and Commission regulations.

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Authorizing Statute(s): PL: Pub.L. 11 - 203 124 stat. 1376 (2010) Name of Law: Dodd-Frank Act
   US Code: 7 USC 6d(c) Name of Law: CEA
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	80 FR 73732	11/25/2015
30-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 5105	02/01/2016
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Conflict of Interest Polocies and Procedures by Futures Commission Merchants and introducting Brokers

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	117,132	155,144	0	-38,012	0	0
Annual Time Burden (Hours)	60,609	80,278	0	-19,669	0	0
Annual Cost Burden (Dollars)	0	8,027,800	0	-8,027,800	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: In light of the current number of Commission-registered FCMs and IBs, the total number of respondents (combined FCMs, SDs, and MSPs) is being reduced from 1,804 to 1,362.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Yes

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 02/01/2016

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