§ 6k — Registration of associates of futures commission merchants, commodity pool operators, and commodity trading advisors; required disclosure of disqualifications; exemptions for associated persons.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC6k]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 6k. Registration of associates of futures commission
merchants, commodity pool operators, and commodity trading
advisors; required disclosure of disqualifications; exemptions
for associated persons
(1) It shall be unlawful for any person to be associated with a
futures commission merchant as a partner, officer, or employee, or to be
associated with an introducing broker as a partner, officer, employee,
or agent (or any person occupying a similar status or performing similar
functions), in any capacity that involves (i) the solicitation or
acceptance of customers' orders (other than in a clerical capacity) or
(ii) the supervision of any person or persons so engaged, unless such
person is registered with the Commission under this chapter as an
associated person of such futures commission merchant or of such
introducing broker and such registration shall not have expired, been
suspended (and the period of suspension has not expired), or been
revoked. It shall be unlawful for a futures commission merchant or
introducing broker to permit such a person to become or remain
associated with the futures commission merchant or introducing broker in
any such capacity if such futures commission merchant or introducing
broker knew or should have known that such person was not so registered
or that such registration had expired, been suspended (and the period of
suspension has not expired), or been revoked. Any individual who is
registered as a floor broker, futures commission merchant, or
introducing broker (and such registration is not suspended or revoked)
need not also register under this paragraph.
(2) It shall be unlawful for any person to be associated with a
commodity pool operator as a partner, officer, employee, consultant, or
agent (or any person occupying a similar status or performing similar
functions), in any capacity that involves (i) the solicitation of funds,
securities, or property for a participation in a commodity pool or (ii)
the supervision of any person or persons so engaged, unless such person
is registered with the Commission under this chapter as an associated
person of such commodity pool operator and such registration shall not
have expired, been suspended (and the period of suspension has not
expired), or been revoked. It shall be unlawful for a commodity pool
operator to permit such a person to become or remain associated with the
commodity pool operator in any such capacity if the commodity pool
operator knew or should have known that such person was not so
registered or that such registration had expired, been suspended (and
the period of suspension has not expired), or been revoked. Any
individual who is registered as a floor broker, futures commission
merchant, introducing broker, commodity pool operator, or as an
associated person of another category of registrant under this section
(and such registration is not suspended or revoked) need not also
register under this paragraph. The Commission may exempt any person or
class of persons from having to register under this paragraph by rule,
regulation, or order.
(3) It shall be unlawful for any person to be associated with a
commodity trading advisor as a partner, officer, employee, consultant,
or agent (or any person occupying a similar status or performing similar
functions), in any capacity which involves (i) the solicitation of a
client's or prospective client's discretionary account or (ii) the
supervision of any person or persons so engaged, unless such person is
registered with the Commission under this chapter as an associated
person of such commodity trading advisor and such registration shall not
have expired, been suspended (and the period of suspension has not
expired), or been revoked. It shall be unlawful for a commodity trading
advisor to permit such a person to become or remain associated with the
commodity trading advisor in any such capacity if the commodity trading
advisor knew or should have known that such person was not so registered
or that such registration had expired, been suspended (and the period of
suspension has not expired), or been revoked. Any individual who is
registered as a floor broker, futures commission merchant, introducing
broker, commodity trading advisor, or as an associated person of another
category of registrant under this section (and such registration is not
suspended or revoked) need not also register under this paragraph. The
Commission may exempt any person or class of persons from having to
register under this paragraph by rule, regulation, or order.
(4) Any person desiring to be registered as an associated person of
a futures commission merchant, of an introducing broker, of a commodity
pool operator, or of a commodity trading advisor shall make application
to the Commission in the form and manner prescribed by the Commission,
giving such information and facts as the Commission may deem necessary
concerning the applicant. Such person, when registered hereunder, shall
likewise continue to report and furnish to the Commission such
information as the Commission may require. Such registration shall
expire at such time as the Commission may by rule, regulation, or order
prescribe.
(5) \1\ It shall be unlawful for any registrant to permit a person
to become or remain an associated person of such registrant, if the
registrant knew or should have known of facts regarding such associated
person that are set forth as statutory disqualifications in section
12a(2) of this title, unless such registrant has notified the Commission
of such facts and the Commission has determined that such person should
be registered or temporarily licensed.
---------------------------------------------------------------------------
\1\ So in original. Two pars.(5) have been enacted.
---------------------------------------------------------------------------
(5) \1\ Any associated person of a broker or dealer that is
registered with the Securities and Exchange Commission, and who limits
its solicitation of orders, acceptance of orders, or execution of
orders, or placing of orders on behalf of others involving any contracts
of sale of any commodity for future delivery or any option on such a
contract, on or subject to the rules of any contract market or
registered derivatives transaction execution facility to security
futures products, shall be exempt from the following provisions of this
chapter and the rules thereunder:
(A) Subsections (b), (d), (e), and (g) of section 6c of this
title.
(B) Sections 6d, 6e, and 6h of this title.
(C) Subsections (b) and (c) of section 6f of this title.
(D) Section 6j of this title.
(E) Paragraph (1) of this section.
(F) Section 6p \2\ of this title.
---------------------------------------------------------------------------
\2\ See References in Text note below.
---------------------------------------------------------------------------
(G) Section 13a-2 of this title.
(H) Subsections (d) and (g) of section 12 of this title.
(I) Section 20 of this title.
(Sept. 21, 1922, ch. 369, Sec. 4k, as added Pub. L. 93-463, title II,
Sec. 204(a), Oct. 23, 1974, 88 Stat. 1396; amended Pub. L. 95-405,
Sec. 7, Sept. 30, 1978, 92 Stat. 869; Pub. L. 97-444, title II,
Sec. 212, Jan. 11, 1983, 96 Stat. 2303; Pub. L. 106-554, Sec. 1(a)(5)
[title II, Sec. 252(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A-448.)
References in Text
Section 6p of this title, referred to in par. (5)(F), was in the
original ``Section 4p'' which was translated as meaning the section 4p
of the Commodity Exchange Act which is classified to section 6p of this
title, rather than to the section 4p of that Act which is classified to
section 6o-1 of this title, to reflect the probable intent of Congress.
Amendments
2000--Par. (5). Pub. L. 106-554, Sec. 1(a)(5) [title II,
Sec. 252(d)], which directed amendment of this section by ``inserting
after paragraph (4), as added by subsection (c) of this section'' a new
par. (5) relating to exempting associated persons or dealers from
provisions of this chapter, was executed by adding that par. (5) at the
end. Section 1(a)(5)[title II, Sec. 252(c)] did not add a par. (4) to
this section.
1983--Par. (1). Pub. L. 97-444 amended par. (1) generally to apply
to introducing brokers and persons associated with introducing brokers.
Par. (2). Pub. L. 97-444 added par. (2). Former par. (2)
redesignated (4).
Par. (3). Pub. L. 97-444 added par. (3). Former par. (3), which
empowered Commission to authorize a registered futures association to
perform any portion of the registration functions under this section, in
accordance with rules approved by the Commission, and subject to the
provisions of this chapter applicable to registrations granted by the
Commission, was struck out.
Par. (4). Pub. L. 97-444 redesignated former par. (2) as (4) and
substituted ``Any person desiring to be registered as an associated
person of a futures commission merchant, of an introducing broker, of a
commodity pool operator, or of a commodity trading advisor shall make
application to the Commission in the form and manner prescribed by the
Commission, giving such information and facts as the Commission may deem
necessary concerning the applicant. Such person, when registered
hereunder, shall likewise continue to report and furnish to the
Commission such information as the Commission may require. Such
registration shall expire at such time as the Commission may by rule,
regulation, or order prescribe'' for ``Any such person desiring to be
registered shall make application to the Commission in the form and
manner prescribed by the Commission, giving such information and facts
as the Commission may deem necessary concerning the applicant. Such
person, when registered hereunder, shall likewise continue to report and
furnish to the Commission such information as the Commission may
require. Such registration shall expire two years after the effective
date thereof or at such other time, not less than one year from the date
of issuance thereof, as the Commission may by rule, regulation, or order
prescribe and shall be renewed upon application therefor, unless the
registration has been suspended (and the period of such suspension has
not expired) or revoked after notice and hearing as prescribed in
section 9 of this title: Provided, That upon initial registration,
unless the Commission otherwise prescribes by rule, regulation, or
order, the effective period of such registration shall be not more than
two years nor less than one year from the effective date thereof''.
Par. (5). Pub. L. 97-444 added par. (5).
1978--Par. (2). Pub. L. 95-405, Sec. 7(1), inserted provisions
authorizing the Commission to prescribe the period of registration of
not less than one year for associated persons.
Par. (3). Pub. L. 95-405, Sec. 7(2), added par. (3).
Effective Date of 1983 Amendment
Amendment by Pub. L. 97-444 effective 120 days after Jan. 11, 1983,
or such earlier date as the Commission shall prescribe by regulation,
see section 239 of Pub. L. 97-444, set out as a note under section 2 of
this title.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28
of Pub. L. 95-405, set out as a note under section 2 of this title.
Effective Date
For effective date of section, see section 418 of Pub. L. 93-463,
set out as an Effective Date of 1974 Amendment note under section 2 of
this title.
Section Referred to in Other Sections
This section is referred to in sections 2, 6f, 9c, 12, 13a-1, 21 of
this title.
