Jan 12, 2022 | News

CTA and CPO Compliance: Time to Reaffirm Exemptions

Any person that claims exemption from CPO registration with NFA under the following CFTC Regs:

  • 4.13(a)(5)
  • 4.13(a)(2)
  • 4.13(a)(3)
  • 4.13(a)(5)
  • 4.5 or
  • CTA Registration 4.14(a)(8)

must reaffirm the exemption at least 60 days before calendar year end, March 1, 2022.

Failure to reaffirm the exemption status will be deemed to have requested a withdrawal of the exemption and will be required to register with NFA.

Members can review the exemption information in two ways:

  1.  Members can view individual persons or entities by navigating to the NFA Basic System and opening the person’s record, click “View All” in the Firm Exemptions box or the Pool Exemption box.  The exemptions page will reflect an affirmation date if an exempt person has properly filed a notice affirming an exemption.  Any exemption that was not previously affirmed will no longer appear in the NFA Basic System.
  2. Additionally, Members can access a spreadsheet that includes a list of persons or entities that have exemptions on file with NFA that must be affirmed on an annual basis.  This spreadsheet is updated overnight every 24 hours and can be found in the Annual Questionnaire which is accessed by logging into the NFA ORS system.  This spreadsheet includes all persons/entities with exemptions that require an annual affirmation and the most recent affirmation date.  If the affirmation due date is March 1, 2021, then the exemption has not yet been affirmed.  Once affirmed, the affirmation due date changes to March 1, ,2022.  any exemptions not affirmed after March 1, 2022 will be withdrawn.

Keep in mind that NFA expects any member transacting business with a person that previously claimed an exemption from CPO/CTA registration under the above regulations must promptly contact the person to determine whether the person intends to file a notice affirming the exemption.

If a member learns that the person does not intend to file a notice affirming the exemption by March 1, 2022 the Member must obtain written notice as to why the person is not required to register or file a notice of exemption.  If the Member determines the written notice is inadequate they must cease transacting customer business with the person or risk violating NFA Bylaw 1101 or Compliance Rule 2-36(d).

If your CTA or Commodity Pool needs to be registered with NFA, please contact Mike at mike@cogcpa.com or 630-461-5841.