21 Jul 2011 Advisers Act; (b) modify the exemption in Section 203(b)(6) of the Advisers Act to cover certain commodity trading advisors advising a private Commodity trading advisors (CTAs) are asset managers who follow a set of systematic investment strategies. Essentially, they are the operators of managed (1) Subject to the provisions of paragraph (c)(2) of this section, if a person who is eligible for exemption from registration as a commodity trading advisor under this section nonetheless registers as a commodity trading advisor, the person must comply with the provisions of this part with respect to those clients for which it could have claimed an exemption from registration hereunder. A commodity trading advisor (CTA) may request relief from certain Commodity Futures Trading Commission (CFTC) regulations. Below are regulations that may offer such relief: CFTC Regulation 4.7: Exemption from certain part 4 requirements for commodity trading advisors with respect to advising qualified eligible persons. Commodity Trading Advisor (CTA) Registration A commodity trading advisor (CTA) is an individual or organization that, for compensation or profit, advises others, directly or indirectly, as to the value of or the advisability of trading futures contracts, options on futures, retail off-exchange forex contracts or swaps. A private commodity trading advisor is exempt from the registration requirement of the CEA if both of the following are true: (i) it has not furnished trading advice to more than fifteen persons during the preceding 12 months, and (ii) it does not hold itself out to the public as a commodity trading advisor.
26 Dec 2019 CFTC Adopts Amendments to Commodity Pool Operator and Commodity Trading Advisor Rules. Regarding Exemptions for Family Offices,
CFTC Headquarters Three Lafayette Centre 1155 21st Street, NW Washington, DC 20581 202.418.5000 However, most commodity trading advisors are able to rely on an exemption from registration set forth in Section 203 (b) (6) of the Advisers Act. This exemption is available to registered commodity trading advisors whose business does not consist primarily of acting as an investment adviser. Firms that claim exemptions from Commodity Pool Operator (“CPO”) registration under CFTC Rule 4.5 or CTFC Regulation 4.13(a)(3) (the “de minimis exemption”), or Rules 4.13(a)(1), 4.13(a)(2), 4.13(a)(5), and firms that claimed an exemption from Commodity Trading Adviser (“CTA”) registration pursuant to CFTC Rule 4.14(a)(8) must re-affirm those exemptions annually within 60 days of the calendar year end – by February 29, 2020. The Division acknowledged the lack of guidance in the Commodity Exchange Act regarding the extent of commodity trading advice that excludes FCMs, SDs, and IBs from registering as a Commodity Trading Advisor. the Division offered a preamble discussing certain activities that would be beyond the scope of “solely incidental” providing limitations, CEA section 1a(12) defines a “commodity trading advisor,” as any person who, for compensation or profit, engages in the business of advising others, either directly or through publications, writings, or electronic media, as to the value of or the advisability of trading in commodity interests. C. Am/Are a non-profit, voluntary membership, trade association or farm organization and the person’s commodity trading advice is solely incidental to the conduct of its business as such association or organization. D. Am/Are a foreign-based entity, located outside the U.S. and I/we only solicit non-U.S. citizens.
On February 2012, the CFTC rescinded Rule 4.13(a)(4) exemption, which provided exemption to private funds offered only to institutional qualified eligible purchasers (“QEP”) and natural persons that meet QEP requirements that hold more than the de minimis amount of commodity interests. Commodity Trading Advisor (“CTA”)
However, most commodity trading advisors are able to rely on an exemption from registration set forth in Section 203 (b) (6) of the Advisers Act. This exemption is available to registered commodity trading advisors whose business does not consist primarily of acting as an investment adviser. Firms that claim exemptions from Commodity Pool Operator (“CPO”) registration under CFTC Rule 4.5 or CTFC Regulation 4.13(a)(3) (the “de minimis exemption”), or Rules 4.13(a)(1), 4.13(a)(2), 4.13(a)(5), and firms that claimed an exemption from Commodity Trading Adviser (“CTA”) registration pursuant to CFTC Rule 4.14(a)(8) must re-affirm those exemptions annually within 60 days of the calendar year end – by February 29, 2020. The Division acknowledged the lack of guidance in the Commodity Exchange Act regarding the extent of commodity trading advice that excludes FCMs, SDs, and IBs from registering as a Commodity Trading Advisor. the Division offered a preamble discussing certain activities that would be beyond the scope of “solely incidental” providing limitations, CEA section 1a(12) defines a “commodity trading advisor,” as any person who, for compensation or profit, engages in the business of advising others, either directly or through publications, writings, or electronic media, as to the value of or the advisability of trading in commodity interests. C. Am/Are a non-profit, voluntary membership, trade association or farm organization and the person’s commodity trading advice is solely incidental to the conduct of its business as such association or organization. D. Am/Are a foreign-based entity, located outside the U.S. and I/we only solicit non-U.S. citizens. In order for a CTA to qualify for the exemption under new Rule 4.14(a)(11) the CTA’s commodity interest trading advice must be solely directed to, and for the sole use of, “family clients,” as defined in the SEC Family Office Rule. The Commodity Futures Trading Commission (CFTC or Commission) is proposing amendments to its regulations to permit commodity pool operators (CPOs) that only solicit and/or accept funds from non-U.S. persons for participation in offshore commodity pools to claim an exemption from CPO registration and compliance requirements with respect to such
On February 2012, the CFTC rescinded Rule 4.13(a)(4) exemption, which provided exemption to private funds offered only to institutional qualified eligible purchasers (“QEP”) and natural persons that meet QEP requirements that hold more than the de minimis amount of commodity interests. Commodity Trading Advisor (“CTA”)
19 Dec 2019 2019, the Commodity Futures Trading Commission (CFTC) finalized to commodity pool operators (CPOs) and commodity trading advisors
These exemptions apply either because an individual or entity is a private commodity trading advisor or the person or entity falls under U.S. Commodity Futures
In order for a CTA to qualify for the exemption under new Rule 4.14(a)(11) the CTA’s commodity interest trading advice must be solely directed to, and for the sole use of, “family clients,” as defined in the SEC Family Office Rule. The Commodity Futures Trading Commission (CFTC or Commission) is proposing amendments to its regulations to permit commodity pool operators (CPOs) that only solicit and/or accept funds from non-U.S. persons for participation in offshore commodity pools to claim an exemption from CPO registration and compliance requirements with respect to such