NFA Adds Financial Ratios to Information Required for Forms PQR and PR for Quarter Ending June 30, 2017
In August 2016, NFA’s Board of Directors issued an Interpretive Notice under which registered CPOs and CTAs will be required to report specified financial ratios in their Forms PQR and PR, beginning with the quarter ended June 30, 2017 (and due for CTAs on August 14 and for CPOs on August 29).
Previously, the reporting on Forms PR and PQR pertained to the pools operated by a CPO or the accounts managed by a CTA. The new requirements pertain to the operations of the registrants themselves (and not to their clients or pools).
In particular, CPOs and CTAs will be required, for their own operations,
- to report the ratio of their current assets/current liabilities; and
- to report the ratio of their total revenue/total expenses.
Any registrant that is both a CPO and a CTA will be required to report the ratios once per quarter.
The Interpretive Notice contains additional helpful information about how to calculate the ratios.
If you have any questions about these new requirements, please contact me at the above address. This information is provided by the Law Office of John P. Ziaukas for educational and informational purposes only and is not intended and should not be construed as legal advice. This information may be considered advertising under applicable California law. Please refer to the Legal Disclaimers link below.