§ 6n. — Registration of commodity trading advisors and commodity pool operators; application; expiration and renewal; record keeping and reports; disclosure; statements of account.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC6n]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 6n. Registration of commodity trading advisors and
commodity pool operators; application; expiration and renewal;
record keeping and reports; disclosure; statements of account
(1) Any commodity trading advisor or commodity pool operator, or any
person who contemplates becoming a commodity trading advisor or
commodity pool operator, may register under this chapter by filing an
application with the Commission. Such application shall contain such
information, in such form and detail, as the Commission may, by rules
and regulations, prescribe as necessary or appropriate in the public
interest, including the following:
(A) the name and form of organization, including capital
structure, under which the applicant engages or intends to engage in
business; the name of the State under the laws of which he is
organized; the location of his principal business office and branch
offices, if any; the names and addresses of all partners, officers,
directors, and persons performing similar functions or, if the
applicant be an individual, of such individual; and the number of
employees;
(B) the education, the business affiliations for the past ten
years, and the present business affiliations of the applicant and of
his partners, officers, directors, and persons performing similar
functions and of any controlling person thereof;
(C) the nature of the business of the applicant, including the
manner of giving advice and rendering of analyses or reports;
(D) the nature and scope of the authority of the applicant with
respect to clients' funds and accounts;
(E) the basis upon which the applicant is or will be
compensated; and
(F) such other information as the Commission may require to
determine whether the applicant is qualified for registration.
(2) Each registration under this section shall expire on the 30th
day of June of each year, or at such other time, not less than one year
from the effective date thereof, as the Commission may by rule,
regulation, or order prescribe, and shall be renewed upon application
therefor subject to the same requirements as in the case of an original
application.
(3)(A) Every commodity trading advisor and commodity pool operator
registered under this chapter shall maintain books and records and file
such reports in such form and manner as may be prescribed by the
Commission. All such books and records shall be kept for a period of at
least three years, or longer if the Commission so directs, and shall be
open to inspection by any representative of the Commission or the
Department of Justice. Upon the request of the Commission, a registered
commodity trading advisor or commodity pool operator shall furnish the
name and address of each client, subscriber, or participant, and submit
samples or copies of all reports, letters, circulars, memorandums,
publications, writings, or other literature or advice distributed to
clients, subscribers, or participants, or prospective clients,
subscribers, or participants.
(B) Unless otherwise authorized by the Commission by rule or
regulation, all commodity trading advisors and commodity pool operators
shall make a full and complete disclosure to their subscribers, clients,
or participants of all futures market positions taken or held by the
individual principals of their organization.
(4) Every commodity pool operator shall regularly furnish statements
of account to each participant in his operations. Such statements shall
be in such form and manner as may be prescribed by the Commission and
shall include complete information as to the current status of all
trading accounts in which such participant has an interest.
(Sept. 21, 1922, ch. 369, Sec. 4n, as added Pub. L. 93-463, title II,
Sec. 205(a), Oct. 23, 1974, 88 Stat. 1398; amended Pub. L. 95-405,
Sec. 9, Sept. 30, 1978, 92 Stat. 870; Pub. L. 97-444, title II,
Sec. 213, Jan. 11, 1983, 96 Stat. 2305.)
Amendments
1983--Par. (5). Pub. L. 97-444 struck out par. (5) which authorized
Commission, without hearing, to deny registration to any person as a
commodity trading advisor or commodity pool operator if such person was
subject to an outstanding order under this chapter denying to such
person trading privileges on any contract market, or suspending or
revoking the registration of such person as a commodity trading advisor,
commodity pool operator, futures commission merchant, or floor broker,
or suspending or expelling such person from membership on any contract
market.
Par. (6). Pub. L. 97-444 struck out par. (6) which authorized
Commission to deny registration or revoke or suspend the registration of
any commodity trading advisor or commodity pool operator if the
Commission found that such denial, revocation, or suspension was in the
public interest and that such person had been guilty of certain
specified activities. See section 12a(2), (3), and (4) of this title.
1978--Par. (2). Pub. L. 95-405, Sec. 9(1)-(3), redesignated par. (3)
as (2) and substituted ``Each registration'' for ``All registrations''
and inserted ``or at such other time, not less than one year from the
effective date thereof, as the Commission may rule, regulation, or order
prescribe,'' after ``June of each year,''. Former par. (2), which
provided that registration under this section becomes effective thirty
days after the receipt of such application by the Commission, or within
such shorter period of time as the Commission may determine, was struck
out.
Pars. (3) to (6). Pub. L. 95-405, Sec. 9(1), redesignated pars. (4)
to (7) as (3) to (6), respectively. Former par. (3) redesignated (2).
Effective Date of 1983 Amendment
Amendment by Pub. L. 97-444 effective Jan. 11, 1983, 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.
