The National Futures Association (the “NFA”) recently amended Compliance Rule 2-46 to impose an automatic $200 per business day late fee for each NFA Form PQR and NFA Form PR that is filed after it is due. The late fee will be applied to the commodity pool operator (“CPO”) or commodity trading adviser (“CTA”) entity, not on the relevant pools. This late fee is effective beginning with the filings due on September 30, 2016.

As a reminder, a CPO who is registered or required to register with the Commodity Futures Trading Commission (“CFTC”) must file NFA Form PQR within 60 days after the end of each quarter, provided that a CPO with gross assets under management of less than $1.5 billion has 90 days to file Form PQR for the quarter ending December 31.

CTAs who are registered or required to register with the CFTC must file NFA Form PR on a quarterly basis within 45 days after the end of each quarter.

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If you have any questions regarding the matters covered in this memo, please contact any of the partners and counsel listed below or your primary attorney in Seward & Kissel’s Investment Management Group.