CFTC Adopts Statutory Disqualification Rule: Final Rule Prohibits Any Person Who Has, or Whose Principals Have, in Their Backgrounds a Statutory Disqualification from Claiming an Exemption from CPO Registration under CFTC Rule 4.13

Sullivan & Cromwell LLP - June 9, 2020
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On June 4, 2020, the CFTC unanimously approved a final rule prohibiting any person who has (or whose principals have) a statutory disqualification in their backgrounds from claiming an exemption from CPO registration under CFTC Rule 4.13 (other than the family office exemption, which remains available).  Previously, persons claiming an exemption from CPO registration under CFTC Rule 4.13 were not required to disclose any previous matters that might impact their eligibility or fitness for registration.  The final rule will require any person, when they first file a notice claiming such exemption, and annually when they affirm such notice, to represent that (subject to limited exceptions) neither the claimant nor any of its principals has in their backgrounds a CEA section 8a(2) disqualification that would require disclosure, if the claimant sought registration with the CFTC.