NFA Notice I-13-28: Filing Requirements for Exemptions Notices under CFTC's Recently Adopted Harmonization Rules

The National Futures Association ("NFA") issued a Notice to Members regarding the CFTC's recently adopted final rules which harmonize certain compliance obligations for CPOs of investment companies registered under the Investment Company Act that are now required to register as a CPO.The final rules provide that a CPO of a registered investment company ("RIC") may elect to comply with CFTC Part 4 ("CPOs and CTAs") disclosure, reporting, and recordkeeping requirements through substituted compliance with the applicable SEC rules for RICs, subject to certain conditions outlined in CFTC Rule 4.12(c) ("Exemption of Provisions from Part 4"). The final rules also provide relief to all CPOs from the requirement of CFTC Rule 4.23 ("Recordkeeping") that a CPO maintain full books and records at its main business office by permitting the CPO to delegate recordkeeping to a third party. Any CPO electing to maintain books and records at a third party must file a notice under 4.23(c), as well as a separate notice for the CPO if its records will be maintained at a third party. This NFA Notice to Members provides information on how to file these notices.

See: NFA Notice I-13-28.See also: CFTC Adopts Harmonization Rules for Registered Investment Companies (with Delta Strategy Group Description, Lofchie Comment and Mehta Comment) (August 13, 2013).