Why is the CTAs Disclosure Document so important?
CTA´s and CPO´s (Commodity Pool operators) are required to file disclosure documents with the NFA. The basic disclosure requirements are intended to ensure that potential investors will be apprised of material facts regarding managed investments and advisors so that they can make an informed decision about a particular investment or advisory service before committing their funds. The CFTC in November 1997 delegated to the NFA the authority and responsibility to conduct the reviews of disclosure documents of both CTA´s and CPO´s required to be filed with the commission. Only upon satisfactory review of the disclosure documents and subsequent approval by the NFA can a CTA or CPO offer his disclosure document to the public for consideration. Disclosure documents provide biographical information on the CTA and generally reviews the trading style and account management philosophy of the CTA as it applies to that particular program. The Document will also contain a review of the trading prog
