Frequently asked questions

None

The Prop Association is an independent self-regulatory organization dedicated to promoting integrity, transparency, and accountability within the prop trading industry. We establish standards, provide a platform for dispute resolution, and support member firms in upholding best practices.

Membership benefits include:

• Enhanced Credibility: Being a TPA member signals to traders and investors that your firm adheres to high ethical and professional standards.
• Dispute Resolution Services: Access to a structured mechanism for resolving disputes with clients, helping maintain positive relationships and trust.
• Best Practices and Guidelines: Access to resources, guidelines, and updates on industry standards to help your firm remain compliant and competitive.

Networking Opportunities: Connect with other industry professionals and firms to share knowledge and collaborate

To be eligible, your firm must:

• Operate in the prop trading industry.
• Be in good standing, complying with all relevant laws and regulations.
• Agree to abide by TPA’s Governance Code, Member Rules, and ethical standards.
• Provide two professional references if in operation for less than two years.

The application process involves:

1. Submit Preliminary Application: Complete and submit the membership application form available on our website on the Apply for Membership page.
2. Our Application Team Will Contact You: We will contact you via e-mail in order to begin the formal screening and application process.
3. Board Approval: Your application will be reviewed by the Membership Committee and approved by the Board.
4. Agreement and Fees: Upon approval, you will execute the membership agreement and pay the required membership fees.

Member firms are obligated to:

• Adhere to TPA’s Rules and Standards: Comply with all provisions in the Governance Code and Member Rules.
• Maintain Ethical Conduct: Act with integrity, fairness, and transparency in all business dealings.
• Implement Internal Controls: Establish effective internal controls and risk management practices.
• Pay Membership Fees Promptly: Ensure timely payment of all dues and fees.

Detailed fee structures are provided upon request or during the application process. All fees must be paid within the stipulated timeframes to avoid late payment penalties.

TPA provides:

• Structured Dispute Resolution Mechanism: Assistance in resolving disputes with clients through non-binding arbitration conducted by financial industry experts with a regulatory background.
• Non-Binding Arbitration Decisions: Our Dispute Resolution Committee issues decisions that become binding on all parties when they are accepted.
• Guidance on Best Practices: Resources to help prevent disputes by promoting fair treatment and clear communication with clients.

Yes, as a condition of membership, your firm must:

• Include TPA’s Dispute Resolution Clause: Amend your client agreements to permit clients to file complaints with TPA.
• Disclose TPA Membership: Inform clients of your affiliation with TPA and provide our contact information for dispute resolution purposes.

TPA is committed to maintaining confidentiality:

• Secure Handling of Information: All data and documents provided are used solely for compliance verification or dispute resolution.
• Non-Disclosure: Information is not disclosed to third parties unless required by law or with your consent.
• Confidential Proceedings: Dispute resolutions are conducted privately under the terms of a Confidentiality Agreement to protect all parties involved.

In the event of a complaint:

• Notification: You will be notified and provided with details of the complaint.
• Opportunity to Respond: Your firm can present evidence and arguments in response.  We provide you a set period of time to resolve the issue on your own directly with your client.
• Escalate if Necessary: If you are unable to resolve the dispute directly, we allow you or your client to escalate the dispute and a member of our Dispute Resolution Committee will step in to review the case.
• Case Review: The Dispute Resolution Committee will review submissions from both parties impartially. 
• A Determination is Made: A determination will be made with respect to the dispute.  Our initial determinations are legally non-binding, but compliance is required to maintain good membership standing.
• A Fair Expert-Mediated Process: Our mediation team will work closely with both the Member Firm and the client to reach a suitable agreement based on the facts of the dispute case.
• Binding Agreement: If a full resolution is reached, and both the client and Member Firm accepts, a Dispute Resolution Agreement will be executed, and the decision then becomes binding on your firm.

Members have the right to appeal Dispute Determinations as well as member penalties and/or sanctions imposed by TPA, such as fines or membership termination. Appeals are reviewed by an independent panel appointed by the Board. However, Dispute Resolution Agreements are final and binding when accepted by both parties.

Non-compliance may result in:

• Sanctions: Including fines, suspension, or termination of membership.
• Reputation Impact: Public disclosure of non-compliance can affect your firm’s credibility.
• Legal Action: For severe breaches, TPA may pursue legal remedies as appropriate.

TPA reviews its Governance Code and Rules annually. Members can propose amendments, which must be approved by a majority vote of the Board. All approved changes are communicated to members and take effect within 30 days.

No, membership is not transferable. If your firm undergoes significant changes, such as mergers or acquisitions, you must notify TPA. A new membership application may be required.

Members are encouraged to:

• Participate in Committees: Join TPA committees or working groups.
• Share Best Practices: Collaborate with other members to promote industry standards.
• Provide Feedback: Offer insights and suggestions on TPA policies and initiatives.

Attend Events: Participate in TPA-organized events, seminars, and networking opportunities.

To terminate membership:

• Provide Notice: Submit a written termination notice at least three months in advance, after the initial 12 months of membership.
• Settle Obligations: Ensure all dues and obligations are settled.
• Cease Use of TPA Branding: Remove all TPA logos and references from your marketing materials and website

Yes, TPA reserves the right to terminate membership for:

• Non-Compliance: Failure to adhere to TPA’s Member Rules, standards, and/or repeated failures to sufficiently respond to or resolve client disputes.
• Unethical Behavior: Activities that harm the integrity of the industry or TPA’s reputation.
• Non-Payment of Fees: Failure to pay dues or fees within specified timeframes
• Other Reasons: As deemed appropriate by the Board, with a14-day prior written notice, and a subsequent failure to cure any cited issues.

TPA ensures independence by:

• Independent Committees: The Dispute Resolution Committee operates independently of member firms.
• No Member Influence: Members do not have representatives on the Committee to prevent bias.
• Transparent Processes: Decision-making procedures are documented and follow established guidelines.
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TPA and its members must:

• Comply with Data Protection Laws: Adhere to regulations such as GDPR where applicable.
• Protect Client Data: Implement measures to prevent unauthorized access or data breaches.
• Use Information Appropriately: Information gathered is used solely for compliance and dispute resolution purposes.
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You can reach us by:

• Email: support@propassociation.com
• Website Contact Form: Visit our website and use the contact form to submit inquiries.

Our team is available to assist you with any questions or support you may need regarding membership and compliance.