NFA CPOs/CTAs, Beware Late Filing Penalties

For firms registered with the National Futures Association (NFA) as commodity pool operators (CPOs) or commodity trading advisors (CTAs) and are required to file NFA Form PQR or PR, you better start getting those filings in on time! The self-regulatory organization recently amended its Compliance Rule 2-46 to impose a $200 late fee for each business day that members are late with their filings. This late fee will become effective for all such filings starting on September 30, 2016.

The NFA uses the information contained in these filings made by CPOs and CTAs by integrating them into its risk management system.  This information assists the organization in determining which member firms to examine, and helps in identifying firms that warrant additional monitoring. However, the NFA has historically experienced problems with firms submitting late filings of Forms PQR or PR, despite stepping up efforts to follow-up with those late filers.

Starting on September 30, for Form PQR, the late fee will apply to the CPO entity and will not be assessed on each pool operated by the CPO that has a late filing. The idea is of course to reduce the number of late filers, and to impose the same practice the NFA currently adheres to with respect to late financial filings made by futures commission merchants, Forex dealers and introducing broker members.  Additionally, the organization indicated that the imposition of late fees will not preclude the NFA from taking disciplinary action against firms under NFA’s Compliance Rules for failure to comply with the filing deadlines – a very clear message that NFA is taking the issue of late filers quite seriously.

More information on this amendment to the rules can be found in the organization’s May 31, 2016 Submission Letter to the CFTC.

If you have questions about your Form PQR or PR filings, please call us at 860-435-2255 or email info@ascendantcompliance.com for more information.

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