Rules Relating to the Operations and Activities of Commodity Pool Operators and Commodity trading Advisors and to Monthly Reporting by Futures Commission Merchants

Forms and Documents

Document	Type	Status	Availability
Form CTA-PR Part-4 Commodity Pool Operators and Commodity Trading Advisors	Form and Instruction	Modified	Available
(2020) 0005 4.13 Stat Disq 60-day notice published.2020.08.05.pdf	Supporting Statement B	Uploaded 2020-10-22	Available
(2020) Exempt CPOs and Stat Disq.3038-0005 Supporting Statement.2020.10.07 (final).docx	Supporting Statement A	Uploaded 2020-10-22	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
29006	Part-4 Commodity Pool Operators and Commodity Trading Advisors	Form and Instruction	Modified
224332	Commodity Pool Operator Annual Report		Unchanged

ICR Details

OMB Control No: 3038-0005	ICR Reference No: 202010-3038-001
Status: Active	Previous ICR Reference No: 201912-3038-001
Agency/Subagency: CFTC	Agency Tracking No:
Title: Rules Relating to the Operations and Activities of Commodity Pool Operators and Commodity trading Advisors and to Monthly Reporting by Futures Commission Merchants
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 11/24/2020
	Date Received in OIRA: 10/20/2020
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2023	36 Months From Approved	03/31/2023
Responses	130,312	0	111,986
Time Burden (Hours)	432,347	0	354,367
Cost Burden (Dollars)	0	0	0

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Abstract: The disclosure, filing, and recordkeeping requirements within part 4 of the Commission’s regulations were established to assist customers, to facilitate the Commission and the National Futures Association (NFA) in monitoring compliance with the part 4 rules, and to enable the Commission to better monitor the market risks posed by the Commission’s registrants, particularly commodity pool operators (CPOs) and commodity trading advisors (CTAs). Commission regulation 4.13 provides exemptions from CPO registration to certain persons and their commodity pools meeting the relevant conditions thereunder; Commission regulation 4.13(b)(1) generally requires as a condition of this exemptive relief that persons seeking to operate as exempt CPOs file a notice with the Commission. Through a recently adopted Final Rule, 85 Fed. Reg. 40877 (July 8, 2020), the Commission amended this notice filing to include an additional mandatory representation: that, subject to limited exceptions, neither the person nor any of its principals has in their backgrounds a statutory disqualification under Section 8a(2) of the Commodity Exchange Act (CEA) that would require disclosure, if such person sought registration with the Commission. The Commission expects this amended notice filing requirement to apply to all persons wishing to claim an exemption under Commission regulation 4.13, as well as those currently relying on one. This amendment to the notice filing was necessary to eliminate the inconsistent treatment of exempt CPOs as compared to registered CPOs (and the principals thereof), whereby certain persons could avoid the CEA’s basic conduct requirements established for all persons registering as intermediaries with the Commission, by claiming an exemption from CPO registration instead.

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Authorizing Statute(s): US Code: 7 USC 6l, 6m, 6n, 6o Name of Law: CEA
   US Code: 7 USC 1a, 2, 12a, 23 Name of Law: CEA
   US Code: 7 USC 6(c), 6b, 6c Name of Law: CEA
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 47359	08/05/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 66539	10/20/2020
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Part-4 Commodity Pool Operators and Commodity Trading Advisors	CTA-PR, CPO-PQR	CTA-PR ,   CPO-PQR
Commodity Pool Operator Annual Report

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	130,312	111,986	0	18,326	0	0
Annual Time Burden (Hours)	432,347	354,367	0	77,980	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Short Statement (provide a brief 1-2 sentence explanation when an existing collection is being amended that increases or decreases the current burden hours; and, amendment to the collection is made at the agency discretion or to adjust the existing burden hours numbers) (not applicable if change is due to a statutory requirement that specifically requires a change in the collection of information). NOTE: This is drawn from Question 15 of the Supporting Statement: The Commission recently adopted an additional representation in the notice filing under 17 CFR 4.13(b)(1) for claiming an exemption from commodity pool operator (CPO) registration. The figures represent updated estimates for respondents, responses, burden hours, and average responses to Part-4 Commodity Pool Operators and Commodity Trading Advisors IC in light of that amendment to Commission regulation 4.13 by the Final Rule: Amendments to Registration and Compliance Requirements for Commodity Pool Operators and Commodity Trading Advisors: Prohibiting Exemptions under Regulation 4.13 on Behalf of Persons Subject to Certain Statutory Disqualifications, 85 Fed. Reg. 40877 (July 8, 2020). Specifically, the burden hours are being adjusted to reflect the small increase in reporting burden persons filing a Commission regulation 4.13(b)(1) notice may incur as a result of the added representation. The Commission is additionally removing the reporting burden specified for Commission regulation 4.13(a)(5), which is already counted with all other notice filings in the calculation for Commission regulation 4.13(b)(1). Finally, the Commission is generally increasing the number of respondents under 17 CFR 4.13 provisions to better align with the number of exempt CPOs currently filing such notices with the Commission. Consequently, the Commission is increasing the number of respondents for the 17 CFR 4.13(b)(1) reporting burden, as well as for the recordkeeping burden associated with 17 CFR 4.13(c)(1)(i)-(ii). Additionally, these totals also include the proposed single burden hours estimate for Form CPO-PQR, required by 17 CFR 4.27, that the Commission submitted to OMB earlier this year in connection with the NPRM significantly simplifying that Form (85 FR 26378 (May 4, 2020)), and which the Commission intends to finalize later this year.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Yes

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 10/20/2020

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