NFA Notice I-13-44: Applicability of CFTC No-Action Letter 13-51 Regarding Reporting as to Subsidiaries That Are Pools

The National Futures Association ("NFA") issued a notice to members regarding the applicability of CFTC No-Action Letter 13-51, which permits the consolidation of pool annual and quarterly reports by wholly owned subsidiaries. NFA stated that relief provided under CFTC No-Action Letter 13-51 only permits consolidated reporting for a registered investment company ("RIC") and its wholly owned subsidiary. The notice went on to inform members that the relief does not permit a commodity pool operator ("CPO") that operates a non-RIC pool that trades commodity interests through a wholly owned subsidiary to report for that non-RIC pool and the wholly owned subsidiary on a consolidated basis.

Any CPO granted relief must provide NFA with a copy of the CFTC approval letter in order for NFA to update its records and eliminate any unnecessary requests for financial filings. Unless the CPO is granted relief by the CFTC, the CPO must file with NFA a separate quarterly report and annual report for the pool and its wholly owned subsidiary.

See: NFA Notice to Members I-13-44.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); NFA Notice I-13-36: Request for CPOs That Operate RICs Utilizing Wholly Owned Subsidiaries (November 18, 2013).