First CPO Quarterly Report Due May 17, 2010
As we recently discussed in an earlier article on NFA Compliance Rule 2-46, the NFA has adopted a new compliance rule which will require commodity pool operators to provide certain information to the NFA on a quarterly basis. In general CPOs will need to provide the NFA with the following information about their pool: the names of certain service providers/ counterparties, change in NAV over the quarter, monthly ROR for the fund, and information on large investments (greater than 10% of the fund’s NAV).
The NFA will be holding a webinar so that members can see how to complete the quarterly filing through the EasyFile system.
The announcement is reprinted in full below and can be found here.
March 17, 2010
Effective Date of NFA Compliance Rule 2-46: CPO Quarterly Reporting Requirements
NFA Compliance Rule 2-46: CPO Quarterly Reporting Requirements will become effective on March 31, 2010. Rule 2-46 requires each CPO Member to report on a quarterly basis to NFA specific information on certain pools that it operates within 45 days after the end of each quarterly reporting period. The CPO must provide the information for each pool that it operates that has a reporting requirement under CFTC regulation 4.22 (which includes exempt pools under CFTC Regulation 4.7). Using a new web-based system that was specifically designed for this rule, the CPO must enter the following information:
(a) the identity of the pool’s administrator, carry broker(s), trading manager(s) and custodian(s);
(b) a statement of changes in net asset value for the quarterly reporting period;
(c) monthly performance for the three months comprising the quarterly reporting period; and
(d) a schedule of investments identifying any investment that exceeds 10% of the pool’s net asset value at the end of the quarterly reporting period.
The first quarterly report will be due by May 17, 2010 for the quarter ended March 31, 2010 and must be filed electronically using NFA’s EasyFile System. In order to ensure that CPO Members understand the new requirements, NFA will host a webinar on April 13, 2010 at 12:00 p.m. (Eastern Time), which will outline the new reporting requirements and how to file using the new system. Click here to register for the webinar. NFA staff will also provide detailed information on the new requirements and filing instructions at NFA’s CPO/CTA Regulatory Seminar being held on April 22, 2010 in New York. Click here to register for the seminar.
More information about NFA Compliance Rule 2-46 can be found in NFA’s August 25, 2009 Submission Letter to the CFTC. Questions concerning the reporting requirements should be directed to Tracey Hunt, Senior Manager, Compliance (email@example.com or 312-781-1284) or Mary McHenry, Senior Manager, Compliance (firstname.lastname@example.org or 312-781-1420).
Other related hedge fund law blog posts include:
- CPO Annual Report Filing Overview
- CTA and CPO Registration and Compliance Guide
- How to Register as a CTA or CPO
- NFA Social Networking Guidance
Cole-Friman & Mallon LLP can provide CPOs with comprehensive support during the filing process. Bart Mallon, Esq. can be reached directly at 415-868-5345.