7 U.S.C. § 6m — Use of mails or other means or instrumen-

Page 71 TITLE 7—AGRICULTURE § 6m (2) their advice, counsel, publications, writings, analyses, and reports customarily re- late to and their operations are directed to- ward and cause the purchase and sale of com- modities for future delivery on or subject to the rules of contract markets or derivatives transaction execution facilities; and (3) the foregoing transactions occur in such volume as to affect substantially transactions on contract markets or derivatives trans- action execution facilities. (Sept. 21, 1922, ch. 369, § 4l, as added Pub. L. 93–463, title II, § 205(a), Oct. 23, 1974, 88 Stat. 1397; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(10)], Dec. 21, 2000, 114 Stat. 2763, 2763A–408.) Editorial Notes AMENDMENTS 2000—Pars. (2), (3). Pub. L. 106–554 inserted ‘‘or deriva- tives transaction execution facilities’’ after ‘‘contract markets’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93–463, set out as an Effective Date of 1974 Amend- ment note under section 2 of this title. § 6m. Use of mails or other means or instrumen- talities of interstate commerce by commodity trading advisors and commodity pool opera- tors; relation to other law (1) It shall be unlawful for any commodity trading advisor or commodity pool operator, un- less registered under this chapter, to make use of the mails or any means or instrumentality of interstate commerce in connection with his business as such commodity trading advisor or commodity pool operator: Provided, That the provisions of this section shall not apply to any commodity trading advisor who, during the course of the preceding twelve months, has not furnished commodity trading advice to more than fifteen persons and who does not hold him- self out generally to the public as a commodity trading advisor. The provisions of this section shall not apply to any commodity trading advi- sor who is a (1) dealer, processor, broker, or sell- er in cash market transactions of any com- modity specifically set forth in section 2(a) of this title prior to October 23, 1974, (or products thereof) or (2) nonprofit, voluntary membership, general farm organization, who provides advice on the sale or purchase of any commodity spe- cifically set forth in section 2(a) of this title prior to October 23, 1974; if the advice by the per- son described in clause (1) or (2) of this sentence as a commodity trading advisor is solely inci- dental to the conduct of that person’s business: Provided, That such person shall be subject to proceedings under section 18 of this title. (2) Nothing in this chapter shall relieve any person of any obligation or duty, or affect the availability of any right or remedy available to the Securities and Exchange Commission or any private party arising under the Securities Act of 1933 [15 U.S.C. 77a et seq.] or the Securities Ex- change Act of 1934 [15 U.S.C. 78a et seq.] gov- erning the issuance, offer, purchase, or sale of securities of a commodity pool, or of persons en- gaged in transactions with respect to such secu- rities, or reporting by a commodity pool. (3) EXCEPTION.— (A) IN GENERAL.—Paragraph (1) shall not apply to any commodity trading advisor that is registered with the Securities and Exchange Commission as an investment adviser whose business does not consist primarily of acting as a commodity trading advisor, as defined in section 1a of this title, and that does not act as a commodity trading advisor to any com- modity pool that is engaged primarily in trad- ing commodity interests. (B) ENGAGED PRIMARILY.—For purposes of subparagraph (A), a commodity trading advi- sor or a commodity pool shall be considered to be ‘‘engaged primarily’’ in the business of being a commodity trading advisor or com- modity pool if it is or holds itself out to the public as being engaged primarily, or proposes to engage primarily, in the business of advis- ing on commodity interests or investing, rein- vesting, owning, holding, or trading in com- modity interests, respectively. (C) COMMODITY INTERESTS.—For purposes of this paragraph, commodity interests shall in- clude contracts of sale of a commodity for fu- ture delivery, options on such contracts, secu- rity futures, swaps, leverage contracts, foreign exchange, spot and forward contracts on phys- ical commodities, and any monies held in an account used for trading commodity interests. (Sept. 21, 1922, ch. 369, § 4m, as added Pub. L. 93–463, title II, § 205(a), Oct. 23, 1974, 88 Stat. 1398; amended Pub. L. 95–405, § 8, Sept. 30, 1978, 92 Stat. 870; Pub. L. 97–444, title I, § 103, Jan. 11, 1983, 96 Stat. 2296; Pub. L. 106–554, § 1(a)(5) [title II, § 251(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–443; Pub. L. 111–203, title VII, §§ 721(e)(2), 749(b), July 21, 2010, 124 Stat. 1671, 1747.) Editorial Notes REFERENCES IN TEXT The Securities Act of 1933, referred to in par. (2), is title I of act May 27, 1933, ch. 38, 48 Stat. 74, which is classified generally to subchapter I (§ 77a et seq.) of chapter 2A of Title 15, Commerce and Trade. For com- plete classification of this Act to the Code, see section 77a of Title 15 and Tables. The Securities Exchange Act of 1934, referred to in par. (2), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables. AMENDMENTS 2010—Par. (3). Pub. L. 111–203, § 749(b), inserted head- ing, designated existing provisions as subpar. (A) and inserted heading, substituted ‘‘Paragraph (1)’’ for ‘‘Sub- section (1) of this section’’ and ‘‘to any commodity pool that is engaged primarily in trading commodity inter- ests.’’ for ‘‘to any investment trust, syndicate, or simi- lar form of enterprise that is engaged primarily in trad- ing in any commodity for future delivery on or subject to the rules of any contract market or registered de- rivatives transaction execution facility.’’, and added subpars. (B) and (C). Pub. L. 111–203, § 721(e)(2), substituted ‘‘section 1a’’ for ‘‘section 1a(6)’’. 2000—Par. (3). Pub. L. 106–554 added par. (3). 1983—Pub. L. 97–444 designated existing provisions as par. (1) and added par. (2). Page 72 TITLE 7—AGRICULTURE § 6n 1978—Pub. L. 95–405 inserted provisions relating to ap- plicability of this section to commodity trading advi- sors who are dealers, processors, brokers, or sellers in cash market transactions of specifically listed com- modities or nonprofit, voluntary membership, general farm organizations who provide advice on sale or pur- chase of specifically listed commodities if the advice by the person described in cl. (1) or (2) of this sentence is incidental solely to the conduct to the person’s busi- ness and that such person be subject to proceedings under section 18 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provi- sion of subtitle A (§§ 711–754) of title VII of Pub. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation imple- menting such provision of subtitle A, see section 754 of Pub. L. 111–203, set out as a note under section 1a of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97–444 effective Jan. 11, 1983, see section 239 of Pub. L. 97–444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–405 effective Oct. 1, 1978, see section 28 of Pub. L. 95–405, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93–463, set out as an Effective Date of 1974 Amend- ment note under section 2 of this title. § 6n. Registration of commodity trading advisors and commodity pool operators; application; expiration and renewal; record keeping and reports; disclosure; statements of account (1) Any commodity trading advisor or com- modity pool operator, or any person who con- templates becoming a commodity trading advi- sor or commodity pool operator, may register under this chapter by filing an application with the Commission. Such application shall contain such information, in such form and detail, as the Commission may, by rules and regulations, prescribe as necessary or appropriate in the pub- lic interest, including the following: (A) the name and form of organization, in- cluding capital structure, under which the ap- plicant engages or intends to engage in busi- ness; the name of the State under the laws of which he is organized; the location of his prin- cipal business office and branch offices, if any; the names and addresses of all partners, offi- cers, directors, and persons performing similar functions or, if the applicant be an individual, of such individual; and the number of employ- ees; (B) the education, the business affiliations for the past ten years, and the present busi- ness affiliations of the applicant and of his partners, officers, directors, and persons per- forming similar functions and of any control- ling person thereof; (C) the nature of the business of the appli- cant, including the manner of giving advice and rendering of analyses or reports; (D) the nature and scope of the authority of the applicant with respect to clients’ funds and accounts; (E) the basis upon which the applicant is or will be compensated; and (F) such other information as the Commis- sion may require to determine whether the ap- plicant is qualified for registration. (2) Each registration under this section shall expire on the 30th day of June of each year, or at such other time, not less than one year from the effective date thereof, as the Commission may by rule, regulation, or order prescribe, and shall be renewed upon application therefor sub- ject to the same requirements as in the case of an original application. (3)(A) Every commodity trading advisor and commodity pool operator registered under this chapter shall maintain books and records and file such reports in such form and manner as may be prescribed by the Commission. All such books and records shall be kept for a period of at least three years, or longer if the Commission so directs, and shall be open to inspection by any representative of the Commission or the Depart- ment of Justice. Upon the request of the Com- mission, a registered commodity trading advisor or commodity pool operator shall furnish the name and address of each client, subscriber, or participant, and submit samples or copies of all reports, letters, circulars, memorandums, publi- cations, writings, or other literature or advice distributed to clients, subscribers, or partici- pants, or prospective clients, subscribers, or par- ticipants. (B) Unless otherwise authorized by the Com- mission by rule or regulation, all commodity trading advisors and commodity pool operators shall make a full and complete disclosure to their subscribers, clients, or participants of all futures market positions taken or held by the individual principals of their organization. (4) Every commodity pool operator shall regu- larly furnish statements of account to each par- ticipant in his operations. Such statements shall be in such form and manner as may be pre- scribed by the Commission and shall include complete information as to the current status of all trading accounts in which such participant has an interest. (Sept. 21, 1922, ch. 369, § 4n, as added Pub. L. 93–463, title II, § 205(a), Oct. 23, 1974, 88 Stat. 1398; amended Pub. L. 95–405, § 9, Sept. 30, 1978, 92 Stat. 870; Pub. L. 97–444, title II, § 213, Jan. 11, 1983, 96 Stat. 2305.) Editorial Notes AMENDMENTS 1983—Par. (5). Pub. L. 97–444 struck out par. (5) which authorized Commission, without hearing, to deny reg- istration to any person as a commodity trading advisor or commodity pool operator if such person was subject to an outstanding order under this chapter denying to such person trading privileges on any contract market, or suspending or revoking the registration of such per- son as a commodity trading advisor, commodity pool operator, futures commission merchant, or floor broker, or suspending or expelling such person from membership on any contract market. Par. (6). Pub. L. 97–444 struck out par. (6) which au- thorized Commission to deny registration or revoke or suspend the registration of any commodity trading ad- visor or commodity pool operator if the Commission found that such denial, revocation, or suspension was