CTFC Issues No-Action Letters for Temporary Relief in Response to COVID-19 Pandemic

During the last week, the CFTC issued several no-action letters aimed at providing temporary relief from certain recordkeeping, operations requirements, and some reporting deadlines as summarized in the table below.

In addition, the CFTC offers a coronavirus-focused webpage, cftc.gov/coronavirus, which includes eight of the nine No-Action letters as well as a Customer Advisory to raise awareness of potential scams during this turbulent time.

Finally, CFTC Chairman Heath Tarbert recently published an op-ed covering his thoughts on the pandemic and market volatility. It can be read by clicking here.

REGISTRANT SUMMARY* CITATION
DCMs and SEFs Relief from time-stamps until June 30, 2020 if responsible personnel is absent. A recording of date/time is still required to be maintained. CFTC Letter No. 20-02
FCMs and IBs Relief from recording oral communications until June 30, 2020 if personnel required to use recorded lines are absent from their normal business site. A written record of the communication, with date/time and other key information must be maintained. CFTC Letter No. 20-03
FCMs and IBs Relief from time-stamps until June 30, 2020 if responsible personnel is absent. A recording of date/time is still required to be maintained. CFTC Letter No. 20-03
FCMs and IBs Relief of CCO Annual Report to the Commission no later than 30 days after the report was due, for any report due to the Commission prior to September 1, 2020. CFTC Letter No. 20-03
FBs Relief from recording oral communications until June 30, 2020 if personnel required to use recorded lines are absent from their normal business site. A written record of the communication, with date/time and other key information must be maintained. CFTC Letter No. 20-04
FBs Relief from time-stamps until June 30, 2020 if responsible personnel is absent. A recording of date/time is still required to be maintained. CFTC Letter No. 20-04
FBs Relief to FB from physical location provided by contract market if FB’s written BCP requires FB’s absence. CFTC Letter No. 20-04
FBs Relief from Introducing Broker’s registration solely due to FB’s absence if FB’s written BCP requires FB’s absence. CFTC Letter No. 20-04
RFEDs Relief from recording oral communications until June 30, 2020 if personnel required to use recorded lines are absent from their normal business site. A written record of the communication, with date/time and other key information must be maintained. CFTC Letter No. 20-05
RFEDs Relief from time-stamps until June 30, 2020 if responsible personnel is absent. A recording of date/time is still required to be maintained. CFTC Letter No. 20-05
SDs Relief from recording oral communications until June 30, 2020 if personnel required to use recorded lines are absent from their normal business site. A written record of the communication, with date/time and other key information must be maintained. CFTC Letter No. 20-06
SDs Relief from time-stamps until June 30, 2020 if responsible personnel is absent. A recording of date/time is still required to be maintained. CFTC Letter No. 20-06
SDs Relief of CCO Annual Report to the Commission no later than 30 days after the report was due, for any report due to the Commission prior to September 1, 2020. CFTC Letter No. 20-06
SEFs Relief until June 30, 2020, for the failure to comply with the following Commission regulations: 37.205(a)-(b), 37.400(b), 37.406, 37.1000(a)(1), and 37.1001 to the extent that non-compliance arises from the inability of SEFs to record voice communications as a result of the displacement of voice trading personnel from their normal business sites in connection with the COVID-19 pandemic response. Seven conditions accompany this relief in the letter. CFTC Letter No. 20-07
SEFs or SEF CCOs Relief for a 60-day period for failure to submit an ACR pursuant to regulation 37.1501(f)(2), if ACR is due prior to September 1, 2020 and ACR is submitted no later than 120 days after the end of SEFs fiscal year. CFTC Letter No. 20-08
SEFs or SEF CCOs Relief for a 60-day period for filing fourth-quarter financial reports pursuant to regulation 37.1306(d), due prior to September 1, 2020 and no later than 120 days after the SEF’s fiscal year. CFTC Letter No. 20-08
DCMs Relief until June 30, 2020, from certain audit trail requirements pursuant to CEA sections 5(d)(4) and (10). Three conditions accompany this relief in the letter. Further, relief is subject to self-regulatory functions and compensating controls should be implemented. CFTC Letter No. 20-09
CPOs Relief until May 15, 2020, for filing an annual report on form CPO-PQR pursuant to regulation 4.27 for Small or Mid-Sized CPOs; and,

Relief until July 15, 2020, for filing Q1 2020 report on form CPO-PQR pursuant to regulation 4.27 for Large CPOs.

CFTC Letter No. 20-11
CPOs Relief for 45 days after the due date for filing Pool annual reports with the NFA and distributing certified financial statements to pool participants, pursuant to regulations 4.7(b)(3) and 4.22(c), for reports due on or before April 30, 2020. CFTC Letter No. 20-11
CPOs Relief for 45 days after the end of the reporting period for distributing monthly or quarterly participant pool statements, pursuant to regulations 4.7(b)(2) or 4.22(b)(3), due on or before April 30, 2020. CFTC Letter No. 20-11

 

*This summary is a quick highlight of the No-Action letters published this week. Not all details are included in this summary. Please review the entire corresponding No-Action letters for complete additional details. If you have any questions about how these CFTC actions are affecting your firm, reach out and contact us.


Subscribe to CSS Blog

CSS frequently publishes blog posts which are written by our team from their observations in the field, at conferences and through experiences with compliance professionals. These posts are designed to further knowledge and share industry best practices. Topics run the gamut, including Form ADV, cybersecurity, MiFID II, position limit monitoring, technology challenges and more. Complete and submit the brief form below to receive notifications when we publish new content.

Latest Content

From One CCO to Another: Don’t Lie to the SEC

Every once in a while, I think it’s important to get back to the basics. Since the adoption of the compliance rules in 2004, the Securities and Exchange Commission staff has repeatedly stated that the intent of the rules were not to hunt CCOs. Great pains have been made to enlist CCOs support in ensuring … Continued

BME Partners with CSS to Strengthen its Regulatory Service Suite

BME to offer financial services firms in Spain and Portugal a multi-regulation reporting platform Partnership brings a unique combination of local market presence and global coverage BME has partnered with Compliance Solutions Strategies (CSS), a leading RegTech platform provider, to offer a global regulatory reporting solution in Spain and Portugal. The combination of BME’s local … Continued

Compliance Solutions Strategies Acquires AMFINE

Combination Creates First Fully End-To-End Compliance Reporting Platform NEW YORK, September 10, 2020 – Compliance Solutions Strategies (“CSS”), a leading RegTech platform providing technology-driven solutions which enable financial services firms to meet mandatory regulatory compliance requirements, today announced the acquisition of AMFINE (“AMFINE”), a provider of SaaS-based regulatory reporting services to European asset managers, asset … Continued