Aug 27, 2012 | Uncategorized

July 2012 Industry Update Alert

CPO Registration Deadline Approaches

CFTC regulation 4.13(a)(4) has now been rescinded.  Previously exempted CPOs offering interests in pools to individuals and entities that fell under the “qualified eligible person” standard must now become registered with the CFTC as well as NFA by December 31, 2012.  CPOs falling under this category will now be required to submit an independently certified audit of their fund.  The deadline for year end audit submission is March 31, 2013.

Guaranteed IBs May Be Risky Business Plan

With the monumental collapse of both MF Global and Peregrine Financial Group (PFG), the once secure business model of the Guaranteed IB has now resulted in a more costly and riskier operation than Independent IBs.  Most IBs went the Guaranteed route because there was no net capital requirement.  However, the largest advantage of being an Independent IB is the ability to setup multiple FCM brokerage arrangements.


Most IBs that were guaranteed by PFG are now on the verge of bankruptcy.  All of their business was with one FCM.  If you are interested in moving toward a more diversified arrangement to protect yourself as well as your clients, please contact Mike at 630-351-8942 or  We can expedite the registration process.  We have over 25 years of extensive NFA compliance and registration experience.

IRS Procedure Allows Delivery of
Electronic K-1s
Effective in 2012, a new IRS Revenue Procedure allows partnerships to exclusively deliver electronic Schedule K-1 Statements (K-1s) instead of the typical paper statements.
While there is no need to gain approval of the IRS before switching to electronic K-1s, certain procedures for the partnership (such as for a hedge fund or futures fund) must be followed in order to obtain each partner’s consent to issue such electronic K-1s.  If you are interested in more information and avoiding the trigger of IRS penalties, please contact us.  You can always reach Mike at 630-351-8942 or email
Michael Coglianese To Moderate
NIBA Panel Chicago
On September 12th, 2012, Michael Coglianese will be moderating a panel at the National Introducing Brokers Association conference at the UBS Center in Chicago.  The topic is “Assessing the Risk of Doing Business With Your FCM.”  The session is set for mid-afternoon.  If you have questions or related topics and would like them discussed by the panel, please submit them to Mike at
Compliance Workshop
CTA Expo Chicago

On September 13, 2012, Michael Coglianese will be hosting a 30 minute Compliance Workshop at the CTA Expo to be held in Chicago at the UBS Center.  This session will be designed as a discussion with time for Q & A.  As we move closer to the conference, we will update you with the exact time of the compliance workshop.  There is no additional fee associated with this workshop so we hope you will take advantage of the opportunity.

If you are attending the conference and would like a private meeting with Mike, please email to set up a time.