hedge fund cpo compliance

On April 8th, the National Futures Association (“NFA”) issued its Notice to Members I-15-13 (the “NTM”), which will be of interest to:

1) Any commodity pool operator (CPO) relying on CFTC No-Action Letters 14-69 or 14-126 in order to delegate certain of their oversight responsbilities as a CPO to another registered CPO; and

2) Any NFA member conducting due diligence pursuant to NFA Bylaw 1101 with respect to the status of a CPO as being properly registered or exempt from registration.

In sum, the NTM describes updates that were made to the NFA’s EasyFile system in order to allow a registered CPO to notify the NFA that another CPO has delegated to the registered CPO the investment management authority over a particular pool. 
Continue Reading Attention Hedge Funds: NFA Updates EasyFile System to Allow For CPO Delegation Under CFTC No-Action Letters 14-69 and/or 14-126

On January 15th, the National Futures Association (“NFA”) issued its Notice to Members I-15-02 (the “NTM”).

The NTM will be of interest to NFA Members, such as futures commission merchants (“FCMs”) and introducing brokers (“IBs”), and any entity in a mutual or hedge fund complex that has not yet affirmed its status for calendar year 2015 as:

  • an exempt commodity pool operator (“CPO”) under Commodity Futures Trading Commission (“CFTC”) Regulation 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), or 4.13(a)(5);
  • an excluded CPO under CFTC Regulation 4.5; or
  • an exempt commodity trading advisor (“CTA”) under CFTC Regulation 4.14(a)(8).

These annual affirmations are due by March 2, 2015.

The remainder of this posting is an overview of the NTM, which is available here.Continue Reading NFA Notice to Members I-15-02: Affirm CPO/CTA Exemptions and Exclusions by March 2nd, NFA Members Given Tools to Monitor Affirmations