NFA Notice I-13-36: Request for CPOs That Operate RICs Utilizing Wholly Owned Subsidiaries

The National Futures Association ("NFA") has issued a notice requesting that any CPO operating a registered investment company ("RIC") that utilizes wholly owned subsidiaries, or controlled foreign corporations, notify the NFA if it has filed a claim of notice under CFTC No-Action Letter 13-51.

CFTC No-Action letter 13-51 permits the CPOs of RICs that trade commodity interests through wholly owned subsidiaries known as controlled foreign corporations ("CFCs") to report for the RIC and CFC on a consolidated basis when complying with financial reporting requirements under CFTC Rule 4.22(c) ("Reporting to Pool Participants") and 4.27(c) ("Additional Reporting by Advisors of Certain Large Commodity Pools"). The NFA is requesting that any CPO that has filed a claim of notice under CFTC No-Action Letter 13-51 notify the NFA of the notice filing by December 31, 2013, using the Exemption System in order to ensure that the NFA's records are accurate for determining annual financial reporting requirements under CFTC Rules 4.22 and 4.27.

See: NFA Notice I-13-36.See also: NFA Exemption System.Related news: CFTC No-Action Letter 13-51 for CPOs of SEC-Registered Investment Companies Having Subs That Are Controlled Foreign Corporations (September 5, 2013).