NFA reminded CPOs and CTAs that failure to affirm an active exemption from registration will result in the exemption being withdrawn on March 2, 2022.
In guidance to CPOs relying on an exemption from CFTC registration under CFTC Rules 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5) or Rule 4.5 and to CTAs relying on an exemption under CFTC Rule 4.14(a)(8), NFA reminded them of their obligation to affirm those exemptions and also provided guidance on how to file the affirmation through the NFA Exemptions System, and FAQs on the affirmation requirements. Persons claiming exemption from CPO registration under the rules must also attest that neither they nor their principals are subject to a statutory disqualification under CEA Section 8a(2).
NFA cautioned that firms that fail to affirm these registration exemptions by March 1, 2022, will have the exemptions withdrawn on March 2, 2022, subjecting registered CPOs and CTAs to the requirements of Part 4 of the CFTC Rules ("Commodity Pool Operators and Commodity Trading Advisors") and non-registrants to potential CFTC enforcement action.
Primary Sources
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
