Oct 19, 2020 | News

Commodity Pool Audit Due Dates and Compliance Checklist

Non-exempt Commodity Pools must submit a certified audit on an annual basis to the National Futures Association.  The audit must be completed by an independent certified public accountant.  The auditor cannot be the same as the pool accountant.

The audit needs to be submitted no later than 90 days from year end.  For example, if a commodity pool has a fiscal year end of December 31, 2020 the audit must be submitted no later than March 31, 2020.  If fiscal year end is other than year end, the certified audit is due to NFA 90 days after fiscal year end.  If that day lands on a weekend, the audit is due the next business day.

Now is a good time for an annual review.

Commodity Pools should review all compliance requirements and operating procedures:

To be completed at least annually by the compliance officer:

_____   Check online NFA registration records to make sure they are current (CPO)

_____    NFA Annual Questionnaire – completed (CPO}

_____   Signed Annual Self-Exam Checklist (NFA) on file (CPO)

_____    Ethics Training for new APs – within 6 months (CPO & Hedge Fund)

_____   Ethics Review for all APs – every 3 years

_____   Promotional Material Folder or log updated with applicable support

_____   Complaint Folder or log updated with applicable support

_____   Branch Office Procedures reviewed (if applicable)

_____   Branch Office Examinations – at least one every 12 months (if applicable) including a report of the examination to the branch office

_____   Disaster Recovery Procedures reviewed

_____   Privacy Policy reviewed

_____   Privacy Policy distributed to non-institutional clients within last 12 months

_____   Written Operational Procedures (incorporated in written documents) reviewed and agree with actual operations and Disclosure Document

_____  Cybersecurity policy (ISSP) reviewed/updated – annually

_____   Annual audit filed with NFA within 90 days (or by an approved extension date) of your fiscal year end (CPO}

_____  Quarterly financial reporting through NFA Easy File (CPO)

_____  Monthly account statements to investors with appropriate affirmation

_____  Supporting documentation assessable for performance calculations

____   Bylaw 1101 compliance records

____   Blue Sky compliance?

____   Sales emails periodic review for appropriateness and compliance with regulations.

_____ General Partner financial records reviewed for appropriate disbursements

_____  Updated disclosure document approved by NFA every 12 months if actively soliciting accounts

_____ Reaffirmation of exemptions (if applicable)

Completed by:                                                         

Date completed: