NFA reminded firms that the CFTC requires any CPO that claims an exemption from registration to file a notice of exemption by March 1, 2022.
NFA stated that CPOs may claim (i) an exclusion from CFTC Rules 4.13(a)(1), (a)(2), (a)(3) and (a)(5) ("Exemption from registration as a commodity pool operator"), (ii) an exclusion from CPO registration under CFTC Rule 4.5 ("Exclusion for certain otherwise regulated persons from the definition of the term 'commodity pool operator'"), or (iii) an exemption from registration as a CTA under CFTC Rule 4.14(a)(8) ("Exemption from registration as a commodity trading advisor"). Those who fail to file by the deadline may be required to be registered.
NFA also provided information as to how CFTC registrants may check on the registration status of their clients. Specifically, NFA Members can identify whether an exempt CPO/CTA has affirmed its exemption in two ways: (i) by using NFA's BASIC System, and/or (ii) by accessing a spreadsheet in the Member's Annual Questionnaire that lists all of those that have exemptions on file with NFA that must be affirmed on an annual basis. NFA cautions Members to contact any of their customers that have not renewed their claims for an exemption and determine whether it is appropriate to continue doing business with them.
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