CFTC and NFA Extend CPO/CTA Filing Deadlines for Certain Filing and Reporting Requirements
On March 20, 2020, the Commodity Futures Trading Commission (the “CFTC”) provided temporary no-action relief to registered commodity pool operators (“CPOs”) by extending the filing timeline for certain ongoing reporting/filing obligations. The CFTC’s no-action letter provides an extension for the following:(i) filing Form CPO-PQR under Regulation 4.27, (ii) submitting pool annual reports under Regulations 4.7(b)(3) or 4.22(c), and (iii) distributing pool periodic account statements under Regulations 4.7(b)(2) or 4.22(b), all subject to specified timing requirements, which are outlined below. CPOs that require other relief may be granted extensions by the CFTC on a case-by-case basis.
Similarly, on March 23, 2020, the National Futures Association (“NFA”) responded with similar relief for CPO and commodity trading advisor (“CTAs”) members by extending the deadline to (i) file NFA Form PQR and Form PR under Compliance Rule 2-46, and (ii) file pool annual reports and provide copies to participants under Compliance Rule 2-13.
Overview of CFTC/NFA Relief
- Filing of Form CPO-PQR: Small CPOs (AUM < $150 million) or Mid-Sized CPOs (AUM > $150 million and < $1.5 million) may now file an annual Form CPO-PQR by May 15, 2020. Large CPOs (AUM > $1.5 billion) may now file a quarterly report on Form CPO-PQR for Q1 2020 by July 15, 2020.
- Filing of Form PQR and Form PR: NFA is extending (i) the due date for Form PQR for the quarter ended December 31, 2019 to May 15, 2020, (ii) the due date for Form PQR for the quarter ended March 31, 2020 to July 15, 2020, and (iii) the due date for Form PR for the quarter ended March 31, 2020 to June 30, 2020.
- Submitting Pool Annual Reports: CPOs may delay pool annual reports due on or before April 30, 2020 pursuant to Regulations 4.7(b)(3) or 4.22(c) if annual certified financial statements are filed with the NFA and distributed to pool participants within 45 days after the due date. CPOs may also request an extension of up to 180 days under Regulation 4.22(f). The NFA’s requirements to file annual pool reports under NFA Compliance Rule 2-13 will be deemed satisfied if the CPO is in compliance with the extended CFTC filing timeline noted above.
- Distributing Pool Periodic Account Statements: CPOs may distribute monthly and quarterly periodic account statements to pool participants under Regulations 4.7(b)(2) or 4.22(b)(3) within 45 days of the end of the applicable reporting period for all reporting periods ending on or before April 30, 2020. The NFA’s requirements to distribute periodic pool account statements to pool participants either monthly or quarterly in accordance with CFTC Regulation 4.7(b) or 4.22(b) will be deemed satisfied if the CPO is in compliance with the extended CFTC timeline noted above.
Given the extended compliance timeline, CPOs/CTAs that are facing bandwidth or staffing issues due to COVID-19 can take extra time to produce and ensure the accuracy of these filings and reports, while utilizing additional resources to navigate the current market environment.
We understand that these are challenging times for our clients and friends. Kleinberg Kaplan has been diligently monitoring the updates and developments pertaining to COVID-19 and the potential impact for our clients.