Oct 26, 2012
The Hedge Fund Law Report published an article titled "So You Don't Want to Take the Series 3 Exam? Alternatives to the General Proficiency Requirement for Associated Persons of Commodity Pool Operators and Commodity Trading Advisors" by Shearman & Sterling partners Sean W. Finley and Nathan J. Greene and senior associate Jared R. Gianatasio (each New York, Investment Funds) on September 27, 2012.
Recent U.S. Commodity Futures Trading Commission rule amendments have left many hedge fund firms with little choice but to register with the CFTC. This article summarizes the proficiency testing requirements of a CFTC registrant's marketing personnel and includes a description of the Series 3 exam, an analysis of exemptions from "associated person" registration and proficiency testing requirements and a summary of possible alternatives to the Series 3 exam. While the exemptions and alternatives are limited, any available relief will save a CFTC registrant's marketing personnel (and the firm itself) significant time and resources in the course of registration with the CFTC.