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: