The CFTC announced that it requires the electronic filing of notices of exemption and exclusion for commodity pool operators (CPOs) and commodity trading advisors (CTAs).
Generally, a person who operates a commodity pool must register with the CFTC as a CPO, and a person who manages clients’ trading must register with the CFTC as a CTA. Under CFTC Regulation 4.5, certain ‘‘otherwise regulated persons’’ are excluded from the CPO definition. These persons include registered investment companies, banks and trust companies, insurance companies, and fiduciaries of ERISA pension plans. A person who qualifies for the exclusion must file a notice of eligibility with National Futures Association (NFA). CFTC regulations also make certain exemptions from CPO and CTA registration available to persons who meet specified criteria. Regulation 4.13 permits exemption from registration for CPOs that limit their activities to small or family pools; or whose participants are highly sophisticated; or whose pools limit participants to SEC "accredited investors.
Firms that are registered with the CFTC in any capacity and non-registrants will both access NFA’s electronic filing system through the use of a designated user ID and password. Registered firms will establish access for appropriate staff using the security manager process in place for their existing Online Registration System (ORS) accounts, the process that is currently used for registration and other electronic filings with NFA.
In order to enable non-registrants, who are not required to have ORS accounts, to file exemption notices, NFA has established a new process that contains similar safeguards regarding the identity of the filers and provides the non-registrant with the ability to establish one or more system users. The electronic filing system will allow filers to select the applicable exemption type and complete a form that will provide the information required for the exemption filing.
The effective date is February 15, 2007.