NFA Manual / Rules
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9018 - REGISTRATION RULE 402: CPOS OF POOLS TRADING PRIMARILY IN SECURITIES
(Board of Directors, August 1, 1992; revised December 10, 2007)
The Board of Directors has granted the Director of Compliance the authority to waive the Series 3 examination for certain individuals who are associated with CPOs who are required to register solely because they operate commodity pools which are principally engaged in securities transactions. The individual or firm requesting the waiver must provide a written description of the facts which qualify the individual for a waiver. The Director of Compliance's decision will be final.
The Director of Compliance is authorized to waive the Series 3 examination in either of the following situations:
1. The CPO or the commodity pool is subject to regulation by a federal or state regulator (e.g., the Securities and Exchange Commission, federal bank regulators or state insurance agencies) or the pool is privately offered pursuant to an exemption from the registration requirements of the Securities Act of 1933 and the CPO limits its activities for which registration is required to operating a commodity pool which:
a. engages principally in securities transactions;
b. commits only a small percentage of its assets as initial margin deposits and premiums for futures and options on futures; and
c. uses futures transactions and options on futures only for hedging or risk management purposes.
2. The individual requesting the waiver is a general partner of a CPO or of a commodity pool which is primarily involved with securities investments; there is at least one registered general partner of the CPO or pool who has taken and passed the Series 3 examination; and the individual requesting the waiver is not involved in soliciting or accepting pool participations, trading futures or options on futures, handling customer funds, supervising any of the above activities or engaging in any other activity that is integral to the operation of the fund as a pool.
Waiver requests should be directed to:
Director of Compliance
National Futures Association
300 South Riverside Plaza
Chicago, Illinois 60606