Skip to comments.CFTC, NFA to Require Quarterly Hedge Fund Reporting
Posted on 03/25/2010 4:19:36 PM PDT by h20skier66
On March 17th of 2010 the self regulatory organization for commodities trading and retail foreign currency transactions in the United States, National Futures Association (NFA), announced a major change to the way Hedge, Commodity, and Forex funds operate. The change, titled Compliance Rule 2-46 is NFAs latest effort to work towards detecting and eliminating Madoff Style investment frauds within the industries they regulate. In order to comply with any set of new regulatory standards one has to first understand the intentions and implications of the adjusted policy. So what then does this adjustment mean for the commodity and forex industries?
Beginning March 31, 2010 NFA Compliance Rule 2-46 will go into effect and be applicable to all NFA CPO members who currently have reporting obligations under the CFTCs existing section 4.22 regulations....
...as of the quarter beginning April 1st, 2010, they will have to adhere to new quarterly reporting guidelines. For managers who may be wondering this new rule affects funds which are designated 4.7 (high net worth) exempt as well.
New Reporting Requirements
During the second quarter of 2010 NFA member CPOs of all types will have much more stringent reporting requirements; No longer will one financial filing per year be satisfactory for affected firms. On Monday, May 17th of 2010 the first of many quarterly financial reports will be due to NFA via an extension to the regulators Easy File system. From that date forward NFA will require that CPO members submit to them the following financial information for all applicable funds 45 days after the close of each subsequent quarter they operate:
(Excerpt) Read more at turnkeytradingpartners.com ...
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