CFTC, NFA Provide Filing Delays for CPOs and CTAs
March 26, 2020
In response to the coronavirus pandemic, the CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter providing blanket relief to commodity pool operators (CPOs), temporarily extending the filing deadlines for Form CPO-PQR, Pool Annual Reports, and Pool Periodic Account Statements under Rules 4.27, 4.22 and 4.7. The March 20 no-action letter is available here. The National Futures Association (NFA) also provided filing deadline relief in its Notice to Members on March 23 for commodity trading advisors (CTAs) and CPOs under NFA Rules 2-13 and 2-46. Following are summaries of the relief:
- Form CPO-PQR filing (CFTC Rule 4.27).The CFTC no-action relief provides that a small or mid-sized CPO may file an annual report on Form CPO-PQR up until May 15, 2020. A large CPO may file a quarterly report on Form CPO-PQR for Q1 2020 up until July 15, 2020.
- Annual Reports (CFTC Rules 4.7(b)(3) and 4.22(c)). The CFTC no-action relief provides that commodity pools’ annual certified financial statements that must be filed on or before April 30, 2020 may be filed with the NFA and distributed to pool participants no later than 45 days after the due date. The relief permits a CPO to request an additional extension of time of 180 days from the end of the pool’s fiscal year consistent with CFTC Rule 4.22(f).
The NFA relief states that CPOs that are in compliance with the CFTC’s no-action relief described above will be deemed to be in compliance with NFA Rule 2-13 if the reports are filed with the NFA and distributed to pool participants by the date specified in the CFTC relief.
- Periodic Account Statements (CFTC Rule 4.7(b)(2) or 4.22(b)). The CFTC no-action relief states that periodic account statements to pool participants on either a monthly or quarterly basis, for reporting periods ending on or before April 30, 2020, may be distributed to participants within 45 days of the end of the reporting period.
The NFA relief states that CPOs that are in compliance with the relief described above will also be in compliance with NFA Rule 2-13 if the statements are distributed to pool participants by the date specified in the CFTC relief.
- NFA Form PR for Quarter Ending March 31. NFA Rule 2-46 requires each CTA to file the NFA Form PR on a quarterly basis with the NFA within 45 days after each quarter end. The NFA is extending the requirement for CTAs to file the form for the quarter ending March 31, 2020 from May 15, 2020 to June 30, 2020.
CFTC and NFA Reminder to Maintain Supervision.
The CFTC reiterates that it expects firms to establish and maintain a supervisory system that is reasonably designed to supervise the activities of personnel while acting from an alternative or remote location during the COVID-19 pandemic (citing the NFA’s March 13, 2020 Branch Supervision NTM).
TAGS: Coronavirus, NFA, CPO, CTA