ATTENTION INVESTMENT FUNDS RELYING ON CFTC RULE 4.13(a)(4) - As you are most likely aware, the "4.13(a)(4)" exemption from CPO registration is on regulatory life support that will on 31 December 2012. On that date, any party relying on 4.13(a)(4) exemption will need to comply with the de minimis exemption from CPO registration under CFTC Rule 4.13(a)(3). Alternately, a former 4.13(a)(4) claimant can register as a CPO and take one of two actions:
- Comply with all of the regulatory requirements applicable to a CFTC registered CPO; or
- Rely on exemptions from certain of the regulatory requirements applicable to a CFTC registered CPO. These exemptions are found in Rule 4.7, 4.12 and CFTC Notice 18-96.
To facilitate the efficient exercise of the latter option, the National Futures Association ("NFA") published its Notice I-12-20 on September 6th. The notice provides, in pertinent part, that:
To assist persons currently operating a pool pursuant to a 4.13(a)(4) exemption that will qualify for an exemption under CFTC Regulation 4.7, 4.12 or CFTC Advisory 18-96, NFA is modifying its Electronic Exemption System to permit these persons to pre-file for the applicable exemption, with an effective date of January 1, 2013. By choosing the pre-filing option, the operator will not become subject to the additional reporting and disclosure requirements related to the newly claimed exemption until 2013. In order to pre-file an exemption, the firm must be registered or pending registration as a CPO (See Notice to Members 1-12-12 for information on pre-filing for registration with a January 1, 2013 effective date) and must have previously filed a 4.13(a)(4) exemption or a related no-action for the pool with the CFTC or NFA.
Additional details are available in the Notice, which is available here.