May 21, 2020 | News

NFA Pool Audit Stub Period Relief – Reminders

Occasionally, our firm runs into new, start up commodity pools that are unaware of this relatively new regulatory relief that can save them time and money when they are just starting out.

If you are a registered commodity pool and the time period from which you first received funds to the end of your fiscal year is four months or less you qualify for audit relief and may only need to submit an unaudited annual report for the pool’s first year.

The following criteria must be met to qualify:

  • From the date the CPO receives funds to the end of the CPO’s fiscal year is 4 months or less (stub period)
  • Within the 4 month time-frame, the pool must have no more than 15 participants
  • The pool participants’ aggregate gross capital contributions did not exceed $3 million
  • A waiver of the right needs to be received by each participant other than the pool operator, CTA, or any others under common control of the pool
  • A notice is filed with NFA containing information in CFTC Reg 4.22(g)(2)(ii)(C)(2) before the date the CPO is required to distribute and submit the Annual Report for the pool’s first fiscal year
  • The following audited Annual Report for the commodity pool must cover the stub period plus the pool’s first 12 months of the next fiscal year.

The stub period regulatory relief is not automatic.  Commodity pool operators MUST file notice through the NFA electronic filing system and choose “Access EasyFile Extensions and Notice Filings.

If you have any questions regarding your commodity pool audits and any associated regulatory relief, please feel free to email Mike Coglianese at or call 630-461-5841.