Guidance on the Annual Affirmation Requirement for Entities Currently Operating Under an Exemption from CPO or CTA Registration

On December 1, 2016, the National Futures Association ("NFA") issued a notice to its members to remind them of certain Commodity Futures Trading Commission ("CFTC") regulations that require any person claiming an exemption from Commodity Pool Operator ("CPO") registration under CFTC Regulation 4.13(a)(1), 4.13(a)(2), 4.13(a)(3), 4.13(a)(5), an exclusion from CPO registration under CFTC Regulation 4.5 or an exemption from Commodity Trading Advisor ("CTA") registration under 4.14(a)(8) to annually affirm the applicable notice of exemption within 60 days of the calendar year, which is March 1, 2017, for this affirmation cycle. The guidance states that failure by a member to affirm such active exemption from CPO or CTA registration will result in the exemption being withdrawn by the NFA on March 1, 2017. Accordingly, by failing to reaffirm in time will result in the entity being subject to Part 4 Requirements regardless of whether the entity otherwise remains eligible for the exemption. For non-registrants, the withdrawal of the exemption may subject the person or entity to enforcement action by the CFTC.

If you have questions about this Alert, please contact Daniel G. Viola at 212.573.8038 or

To read the full Notice I-16-29, please click on the link below:

Cheryl Spratt