If you are a CTA and CPO and you currently claim an exemption under 4.13(a)(2), (a)(3), (a)(5), or exclusion from CPO registration under CFTC Reg 4.5 or CTA registration under 4.14(a)(8), you must reaffirm this exemption on or before March 1, 2019.
If the deadline passes without reaffirmations, CTAs and CPOs may be required to be registered with NFA/CFTC.
Occasionally, it may be difficult to determine if previously exempt CPOs and CTAs continue to be eligible for the exemption. Therefore, members who take reasonable steps to determine the registration and membership status of these previously exempt persons will not be in violation of NFA Bylaw 1101 or Compliance Rule 2-36(d) if between January 1, 2019 and March 31, 2019 they transact customer business with a previously exempt persona that fails to become registered and an NFA Member, file notice affirming its exemption from CPO/CTA registration, or provide a written representation as to why the person is not required to register or file the notice affirming the exemption.
Additionally, NFA expects any Member transacting customer business with a person that previously claimed an exemption from CPO/CTA registration under the regulations and has not filed a notice affirming their exemption needs to contact the person to determine whether there will be an intention to file the affirmation.
If the member determines the person doesn’t intend to file affirmation of the exemption and it is discovered the person is not required to be registered then the Member must put a plan in place to cease transacting customer business with the person or risk a violation of NFA Bylaw 1101 or Compliance Rule 2-36(d).
If you are in need of a compliance consultation or need to expedite your CPO/CTA Registration because you are no longer exempt, please call Mike at 630-351-8942 or email Mike@cogcpa.com.