Laws: Cases and Codes : U.S. Code : Title 7 : Section 6k


   
U.S. Code as of: 01/03/05
Section 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    of suspension has not expired), or been revoked.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    of suspension has not expired), or been revoked.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    expired), or been revoked.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.

      (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.

        (G) Section 13a-2 of this title.
        (H) Subsections (d) and (g) of section 12 of this title.
        (I) Section 20 of this title.



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