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

Forms and Documents

Document	Type	Status	Availability
(2019) 30-Day Federal Register Notice 3038-0078.pdf	Supplementary Document	Uploaded 2019-07-01	Repair queued
2019- 60-Day Notice for 3038-0078.pdf	Supplementary Document	Uploaded 2019-07-01	Repair queued
( 2019) Supporting Statement - 3038-0078 - final.docx	Supporting Statement A	Uploaded 2019-07-01	Repair queued

IC Document Collections

IC ID	Collection	Type	Status	Form
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: 201907-3038-001
Status: Active	Previous ICR Reference No: 201601-3038-002
Agency/Subagency: CFTC	Agency Tracking No:
Title: Conflict of Interest Policies and Procedures by Future Commission Merchants and introducing Brokers
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 09/04/2019
	Date Received in OIRA: 07/01/2019
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2022	36 Months From Approved	09/30/2019
Responses	106,984	0	117,132
Time Burden (Hours)	55,358	0	60,609
Cost Burden (Dollars)	0	0	0

---

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.

---

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

---

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

---

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 14098	04/09/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 31307	07/01/2019
Did the Agency receive public comments on this ICR? No

---

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

---

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	106,984	117,132	0	-10,148	0	0
Annual Time Burden (Hours)	55,358	60,609	0	-5,251	0	0
Annual Cost Burden (Dollars)	0	0	0	0	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: The Commission has revised its estimate in light of the current number of Commission registered futures commission merchants and introducing brokers, which has decreased since the last renewal. Specifically, the Commission is reducing its estimate of the total number of respondents from 1,362 to 1,244.

---

Annual Cost to Federal Government: $0

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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

---

Common Form ICR:  No

---

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: 07/01/2019

---