Happy New Year!
As a reminder, any person claiming certain relief from the requirement to register as a commodity pool operator (CPO) or commodity trading advisor (CTA) must submit an annual affirmation to the National Futures Association (“NFA”) by February 29, 2016. In particular, such affirmation must be filed by any person relying on the exemption or exclusion available under any of the following Commodity Futures Trading Commission (“CFTC”) rules:
Rule 4.13(a)(5); or
Rule 4.14(a)(8), which is the only relief available to CTAs (i.e., the relief available under all of the other rules applies to CPOs).
The affirmation process is important, since a failure to affirm an active exemption or exclusion from CPO or CTA registration by February 29, 2016 will result in the exemption or exclusion being withdrawn on March 1, 2016. In turn, the formerly exempt CPO or CTA:
1) will be subject to the regulatory requirements that apply under Part 4 of the CFTC’s rules; and
2) may be subject to an enforcement action by the CFTC.
The NFA has published a very useful guidance notice (Notice to Members I-15-26: Guidance on the annual affirmation requirement for entities currently operating under an exemption or exclusion from CPO or CTA registration), which you can access here. Among other things, the notice provides information about the mechanics of the affirmation process, a helpful “Q&A,” and NFA contacts for any questions about the affirmation process.
Good day. Good affirming. DR2