Who regulates Commodity Trading Advisors (CTAs)?
They are regulated by the Commodity Futures Trading Commission (CFTC) and by the National Futures Association (NFA), the congressionally authorized self-regulatory organization of the futures industry. Advisors’ disclosure documents are required to be submitted to the NFA for review in advance of distribution to prospective investors. On an ongoing basis, NFA audits disclosure documents (particularly performance information), promotional materials, and trading activities. Violations of CFTC or NFA rules can result in a loss of trading privileges and other penalties. You can verify an advisor’s registration and NFA membership by phoning NFA toll-free at 1-800-621-3570 or visit them at www.nfa.futures.org. NFA also offers, without charge, a number of informative publications regarding its regulatory activities and futures trading.
