- Delivery of disclosure documents to each prospective participant in any pool that a CPO operates;
- Distribution of account statements to each participant in any pool that a CPO operates;
- Provision information that must appear in a CPO’s disclosure documents, including performance disclosures; and
- The use, amendment and filing of disclosure documents.
Additionally, the Harmonization Rules provide relief for all CPOs and Commodity Trading Advisors (“CTAs”) (not just those who are dually registered) in allowing CPOs and CTAs to utilize a third-party service provider to maintain their books and records – so long as the CPOs and/or CTAs file a notice with the CFTC and the records remain readily accessible. While the Harmonization Rules will certainly be a relief for dually registered operators, it is important to bear in mind that failure to adhere to SEC regulations will be considered a violation by not only the SEC, but the CFTC as well. As such, it is vital that operators in this position understand and strictly adhere with all relevant regulations, and ensure that their firms remain compliant.For further information on this, or other related topics, please contact us at firstname.lastname@example.org or (619)298-2880.