CPO checklist-appendix B

�	NBR	QUESTION
�	�	�
DDP	1	The document includes the required Cautionary Statement.
DDP	2	The document includes the required Risk Disclosure Statement.
DDP	3	If the pool intends to trade foreign futures and options, the paragraph required by CFTC Regulation 4.24(b)(2) is included in the Risk Disclosure Statement in boldface type.
DDP	4	If the potential liability to the participant is greater than the participant?s contributions and profits, the statement required by CFTC Regulation 4.24 (b)(3) is the last paragraph of the Risk Disclosure Statement and is displayed in capital letters and boldface type.
DDP	5	The document is paginated and fastened in a secure manner.
DDP	6	The document includes a table of contents immediately following the Risk Disclosure Statement.
DDP	7	The required information concerning the CPO is included in the forepart of the document. (CFTC Regulation 4.24(d)(2))
DDP	8	The document discloses the name of each principal of the CPO and, if applicable, identifies those principals of the CPO who will make the trading decisions for the pool.
DDP	9	The document discloses all material administrative, civil or criminal action(s) taken against the CPO and its principals within the past five years. (Reconcile with NFA's Clearinghouse system for any material actions and review the pool's most recent certified PFS)
DDP	10	The document discloses the business background, for the past five years of the CPO and each required principal for the past five years.
DDP	11	The document discloses the location in the document of any required past performance disclosures for any of the individuals listed above.
DDP	12	The document discloses the extent of any ownership/beneficial interest in the pool by the CPO or any of its principals.
DDP	13	If commodity interests will be/are traded for the CPO?s or principals? own account(s), the document discloses whether participants will be permitted to inspect records of such trades and any written policies related to such trading.
DDP	14	The document includes the name of the pool's trading manager, if any, and each principal thereof.
DDP	15	The document identifies those principals of the trading manager which will make trading decisions for the pool.
DDP	16	The document discloses all material administrative, civil or criminal action(s) taken against the pool's trading manager and its principals within the past five years. (Reconcile with NFA's Clearinghouse system for any material actions.)
DDP	17	The document discloses the business background of the trading manager and its principals for the past five years.
DDP	18	The document discloses the location in the document of any required past performance disclosures for any of the individuals listed above.
DDP	19	The document discloses the extent of any ownership/beneficial interest in the pool by the pool's trading manager and any principal thereof.
DDP	20	If commodity interests will be/are traded for the trading manager?s or its principals? own account(s), the document discloses whether participants will be permitted to inspect records of such trades and any related written policies.
DDP	21	The document contains the name of each major CTA and the principals thereof.
DDP	22	The document identifies those principals of the major CTA(s) which will make trading decisions for the pool.
DDP	23	The document discloses the business background, for the past five years, of each major CTA and the principals thereof.
DDP	24	The document discloses the location in the document of any required past performance disclosures for any of the individuals listed above.
DDP	25	The document discloses the extent of any ownership/beneficial interest in the pool by each major CTA and any principals thereof.
DDP	26	The document discloses all material administrative, civil or criminal action taken against each major CTA and its principals within the past five years. (Reconcile with NFA's Clearinghouse system for any material actions.)
DDP	27	If commodity interests will be/are traded for the major CTA?s or its principals? own account(s), the document discloses whether participants will be permitted to inspect records of such trades and any related written policies.
DDP	28	The document discloses the name of each major investee pool, the operator of each major investee pool and the principals thereof.
DDP	29	The document identifies which principals of the major investee pool operators will make trading decisions for the pool.
DDP	30	The document discloses the business background, for the past five years of each operator or a major investee pool and the principals thereof.
DDP	31	The document discloses the location in the document of any required past performance disclosures for each major investee pool, the operator of such investee pool, and each principal of the operator thereof.
DDP	32	The document discloses the extent of any ownership/beneficial interest in the pool by the operators of the pool's major investee pools and any principal thereof.
DDP	33	The document discloses all material administrative, civil or criminal action taken against the operator of each major investee pool and its principals thereof within the past five years. (Reconcile with NFA's Clearinghouse system for any material actions.)
DDP	34	The document discloses the name of the FCM that will be clearing trades, if known.
DDP	35	The document discloses all material administrative, civil or criminal action taken against the FCM within the past five years.(Reconcile with NFA's Clearinghouse system for any material actions.)
DDP	36	If applicable, the document discloses the name of the IB through which the pool will introduce its trades to the FCM.
DDP	37	The document discloses all material administrative, civil or criminal actions taken against the IB within the past five years. (Reconcile with NFA's Clearinghouse system for any material actions.)
DDP	38	The required information concerning the offered pool is included in the forepart of the document. (CFTC Regulation 4.24(d)(1).)
DDP	39	If applicable, the forepart of the document includes a statement that the pool is privately offered.
DDP	40	If applicable, the forepart of the document includes a statement that the pool is a multi-advisor pool.
DDP	41	If applicable, the forepart of the document includes a statement that the pool is a principal-protected pool.
DDP	42	If applicable, the forepart of the document includes a statement that the pool is continuously offered. (If the pools is not continuously offered, the closing date of the offering must be disclosed.)
DDP	43	The break-even point per unit of initial investment is included in the forepart of the document.
DDP	44	The document adquately discloses the principal risk factors of participation in the offered pool. CFTC Regulation 4.24(g)
DDP	45	The document discloses the required information concerning the pool's investment in commodity interests and other interests. CFTC Regulation 4.24(h)(1)
DDP	46	The document includes an adequate description of the trading and investment program and policies that will be followed by the offered pool, and any material restrictions or limitations on trading. CFTC Regulation 4.24(h)(2)
DDP	47	The document includes an adequate summary description of the pool?s major CTAs. CFTC Regulation 4.24 (h)(3)(i)
DDP	48	The document includes an adquate summary description of the pool's major investee pools or funds. CFTC Regulation 4.24(h)(3)(ii)
DDP	49	For principal-protected pools, the disclosure document includes the information required to adequately describe the principal protection feature. CFTC Regulation 4.24(o)
DDP	50	The document fully describes any actual of potential conflicts of interest regarding any aspect of the pool on the part of: the CPO, the pool's trading manager, any major CTA, the CPO of any major investee pool, any required principal of the foregoing, or any other other required person. CFTC Regulation 4.24(j)
DDP	51	The document includes a description, including the costs to the pool, of all material related party transactions or arrangements.
DDP	52	The document discloses the minimum aggregate subscriptions that will be necessary for the pool to commence trading; the minimum and maximum aggregate subscriptions that may be contributed to the pool; the maximum period of time the pool will hold funds prior to the commencement of trading; the disposition of funds received if the pool does not receive the necessary amount to commence trading, including the period of time within which the disposition will be made; and where the pool operator will deposit funds received prior to the commencement of trading, and a statement specifying to whom any income from such deposits will be paid.
DDP	53	The document discloses the manner in which the pool will fulfill its margin requirements and the approximate percentage of the pools assets that will be held in segregation pursuant to CFTC regulations. (If the pool will fulfill its margin requirements with other than cash deposits, the nature of such deposits must be disclosed as well as who will be paid any income generated from such assets.)
DDP	54	The document adequately describes each fee, commission and other expense incurred by the pool for its preceding fiscal year and expected to be incurred in the current fiscal year. CFTC Regulation 4.24(i)(2)
DDP	55	The document discloses any costs associated with providing the protection feature of a principal-protected pool
DDP	56	If base amounts are used in determining expenses, the document explains how the base amount(s) will be calculated.
DDP	57	If a fee is based on an increase in value of the pool, the document explains how the increase is calculated, the period of time during which the increase is calculated, the fee, commission or other expense to be charged at the end of that period and the value of the pool at which payment of the fee commission or other expense commences.
DDP	58	If any expense of the pool is paid by a person other than the pool, the document discloses the nature and amount thereof and the person who paid or is expected to pay the expense.
DDP	59	In relation to the distribution of profits and capital, the document outlines the following: policies/procedures, frequency, federal income tax effects of such distributions. If applicable, the federal tax objectives of the pool, the manner in which the objectives will be achieved and any related risks are disclosed.
DDP	60	The document states the CPO will provide participants with monthly or quarterly statements and an annual audited report.
DDP	61	The document adequately discloses any restrictions upon the trasferability of a particpant's interst in the pool.
DDP	62	The document adequately describes the frequency, timing and manner in which a participant may redeem interests in the pool. CFTC Regulation 4.24(p)(2).
DDP	63	The document adequately describes the extent to which a participant may be held liable for obligations of the pool in excess of the funds contributed by the participant for the purchase of an interest in the pool.
DDP	64	The document includes all other material information not specifically mentioned in the regulations.
DDP	65	If the firm is uncertain about the background and/or disciplinary history of any FCM, IB, CPO or CTA which should be disclosed in the document, the firm has contacted NFA to verify and/or obtain this information.
DDP	66	If unusal items are noted during the review of this pool's disclosure document, consider requesting promotional material utilized by the firm in soliciting for the pool.
DDP	67	Document any type of feedback received regarding NFA's review process in the analyst notes/deficiency column.
DDP	68	Ensure all performance is current as of a date not more than three months preceding the date of the document.
DDP	69	Ensure all performance disclosures are in accordance with their respective advisories.
DDP	70	The document includes the name of the offered pool in capsule form. If applicable, a statement whether the pool is privately offered, a multi-advisor pool or principal-protected pool.
DDP	71	The document includes the following information with respect to the offered pool in capsule form: date of inception of trading, aggregate gross capital subscriptions, and current net asset value.
DDP	72	The document includes the largest monthly draw-down during most recent five calendar years and year-to-date (expressed as a percentage of pool?s net asset value) and the month and year of the draw-down for the offered pool in capsule form. (The capsule must include a definition of draw-down that is consistent with 4.10(k).)
DDP	73	The document includes the worst peak-to-valley draw-down during the most recent five calendar years and year-to-date (expressed as a percentage of the pool?s net asset value) and the months and year of the draw-down for the offered pool in capsule form.
DDP	74	The document includes the annual and year-to-date rates of return for the most recent five calendar years and year-to-date for the offered pool in capsule form.
DDP	75	The document includes the monthly rates of return for the most recent five calendar years and year-to-date presented in either a numerical table or bar graph for the offered pool in capsule form.
DDP	76	The performance of the offered pool is identified as such, presented separately and is the first performance presented in the document.
DDP	77	If the offered pool has no operating history the statement required by CFTC Regulation 4.25(c)(1)(ii) is disclosed.
DDP	78	If the offered pool does not have a three year operating history (i.e., The pool has traded commodities for at least three years and during those three years 75% or more of the contributions to the pool were made by persons unaffiliated with the CPO, trading manager, pool?s CTAs and their principals), the document includes the performance of all other pools and accounts traded by the CPO and trading manager, if applicable, for the most recent five calendar years and year to date.
DDP	79	The performance of other pools is presented in capsule form and includes the following information: date of inception of trading, aggregate gross subscriptions to pool, pool's current net asset value, largest monthly draw-down during the most recent five calendar years and year-to-date and the month and year of the draw-down, worst peak-to-valley draw-down during the most recent five calendar years and year-to-date and the months and year of the draw-down, annual and year to date rates of return for the most five calendar years and year-to-date.
DDP	80	The performance of other accounts is presented in capsule form and includes the following information as of the date of the document: the number of accounts traded pursuant to the specified trading program, the total assets under management, total assets traded pursuant to specified trading program, largest monthly draw-down for the specified trading program during the most recent five calendar years and year-to-date and the month and year of the draw-down, worst peak to valley drawn down for the specified trading program during the most recent five calendar years and year to date and the months and year of the drawn-down, annual and year-to-date rates of return for the specified program for the most recent five calendar years and year to date.
DDP	81	If performance is presented on a composite basis program-by-program, material differences among accounts are disclosed.
DDP	82	If the performance of other pools operated by the CPO and trading manager is presented in the document the following requirements are met: 1) Performance data for pools of the same class (i.e. private offerings or public offerings, principal protected or non principal-protected and multi-advisor or non multi-advisor) as the offered pool are presented immediately following the offered pool on a pool- by- pool basis ; 2) Performance data for pools of a different class from the offered pool are disclosed less prominently; 3) If performance of pools of a different class is presented on a composite basis, the document discloses how the composite was developed ;4) Pools of different classes are not presented in the same composite; 5) Pools with materially different rates of return are not presented in the same composite; and 6) Material differences among pools, including differences in leverage and use of different trading programs, is described.
DDP	83	If the CPO or trading manager of the offered pool has not operated any pool that has a three year operating history the document discloses in capsule form the performance of all other pools and accounts traded by the trading principals of the CPO and trading manager.
DDP	84	If neither the CPO or trading manager nor any of their trading principals has operated any other pools or traded any other accounts, the statement prescribed by CFTC Regulation 4.25(c)(2)(ii) is disclosed in the document.
DDP	85	If the offered pool does not have a three year operating history the performance of all accounts (including pools) directed by each major CTA is disclosed including the following information as of the date of the document: number of accounts directed by the CTA, total assets under management of the CTA, total assets traded pursuant to the specified program, Largest monthly draw-down for the specified trading program during the most recent five calendar years and year-to-date and the month and year of the draw-down, worst peak-to-valley draw-down for the specified trading program during the most recent five calendar years and year-to-date and the months and year of the draw-down, annual and year-to-date rates of return for the specified program for the most recent five calendar years and year-to-date
DDP	86	If the major CTA has not previously traded accounts the statement required by CFTC Regulation 4.25(c)(3)(ii) is disclosed.
DDP	87	If the offered pool does not meet the three year operating requirement the performance of each major investee pool is disclosed in capsule form.
DDP	88	If a major investee pool has not commenced trading the statement required by CFTC Regulation 4.25(c)(4)(ii) is disclosed.
DDP	89	The document discloses the following information with respect to other CTAs managing a portion of the offered pool?s funds and other investee pools: monthly return parameters (high and lows), historical volatility and degree of leverage, material difference between the performance of such CTAs and investee pools compared to the offered pool's major CTAs and major investee pools.
DDP	90	If proprietary performance results are disclosed they are presented separately and appear after all other required and non-required performance disclosures in the document.
DDP	91	Proprietary performance is prominently labeled as such.
DDP	92	All differences between the proprietary performance and the performance of the offered pool is discussed.
DDP	93	All performance information, whether or not required by CFTC regulations, is preceded by the statement required by NFA Compliance Rule 2-29(b)(4).
DDP	94	If hypothetical, extracted or simulated trading results are contained in the document they are clearly labeled as such and appear as the last items disclosed in the document.
DDP	95	If hypothetical performance is included, ensure that the performance presented is for a trading program with less than 3 months of actual trading results.
DDP	96	The hypothetical disclaimer prescribed by NFA Compliance Rule 2-29(c) is included if hypothetical or other simulated results are presented.
DDP	97	Update FACTS External Tracking Pool Update Screen with the Date of most recent DDP
DDP	98	Whether the pool has commenced trading
DDP	99	Current carrying brokers and CTAs
DDP	100	Applicable NAV information
DDP	101	Ensure the pool's FYE disclosed in the DDP agrees with Pool Update Screen.
DDP	102	Review NFA's records and document any exemptions or "No-Action" positions.
DDP	103	If the pool is traded by a CTA, ensure that a recent DDA has been submitted, if applicable. If a recent DDA is not on file, prepare a CTA Discrepancy Report and forward to the applicable audit group.
DDP	104	Review audit reports issued within the past year to ensure all disclosure document deficiencies have been addressed.
DDP	105	Review the CFTC status report to determine whether the firm was required to make changes to its document, upon this filing; Ensure such changes were made.

NBR

QUESTION

DDP

1

The document includes the required Cautionary Statement.

DDP

2

The document includes the required Risk Disclosure Statement.

DDP

3

If the pool intends to trade foreign futures and options, the paragraph required by CFTC Regulation 4.24(b)(2) is included in the Risk Disclosure Statement in boldface type.

DDP

4

If the potential liability to the participant is greater than the participant?s contributions and profits, the statement required by CFTC Regulation 4.24 (b)(3) is the last paragraph of the Risk Disclosure Statement and is displayed in capital letters and boldface type.

DDP

5

The document is paginated and fastened in a secure manner.

DDP

6

The document includes a table of contents immediately following the Risk Disclosure Statement.

DDP

7

The required information concerning the CPO is included in the forepart of the document. (CFTC Regulation 4.24(d)(2))

DDP

8

The document discloses the name of each principal of the CPO and, if applicable, identifies those principals of the CPO who will make the trading decisions for the pool.

DDP

9

The document discloses all material administrative, civil or criminal action(s) taken against the CPO and its principals within the past five years. (Reconcile with NFA's Clearinghouse system for any material actions and review the pool's most recent certified PFS)

DDP

10

The document discloses the business background, for the past five years of the CPO and each required principal for the past five years.

DDP

11

The document discloses the location in the document of any required past performance disclosures for any of the individuals listed above.

DDP

12

The document discloses the extent of any ownership/beneficial interest in the pool by the CPO or any of its principals.

DDP

13

If commodity interests will be/are traded for the CPO?s or principals? own account(s), the document discloses whether participants will be permitted to inspect records of such trades and any written policies related to such trading.

DDP

14

The document includes the name of the pool's trading manager, if any, and each principal thereof.

DDP

15

The document identifies those principals of the trading manager which will make trading decisions for the pool.

DDP

16

The document discloses all material administrative, civil or criminal action(s) taken against the pool's trading manager and its principals within the past five years. (Reconcile with NFA's Clearinghouse system for any material actions.)

DDP

17

The document discloses the business background of the trading manager and its principals for the past five years.

DDP

18

The document discloses the location in the document of any required past performance disclosures for any of the individuals listed above.

DDP

19

The document discloses the extent of any ownership/beneficial interest in the pool by the pool's trading manager and any principal thereof.

DDP

20

If commodity interests will be/are traded for the trading manager?s or its principals? own account(s), the document discloses whether participants will be permitted to inspect records of such trades and any related written policies.

DDP

21

The document contains the name of each major CTA and the principals thereof.

DDP

22

The document identifies those principals of the major CTA(s) which will make trading decisions for the pool.

DDP

23

The document discloses the business background, for the past five years, of each major CTA and the principals thereof.

DDP

24

The document discloses the location in the document of any required past performance disclosures for any of the individuals listed above.

DDP

25

The document discloses the extent of any ownership/beneficial interest in the pool by each major CTA and any principals thereof.

DDP

26

The document discloses all material administrative, civil or criminal action taken against each major CTA and its principals within the past five years. (Reconcile with NFA's Clearinghouse system for any material actions.)