7 U.S.C. § 6p — Standards and examinations

Page 73 TITLE 7—AGRICULTURE § 6p in the public interest and that such person had been guilty of certain specified activities. See section 12a(2), (3), and (4) of this title. 1978—Par. (2). Pub. L. 95–405, § 9(1)–(3), redesignated par. (3) as (2) and substituted ‘‘Each registration’’ for ‘‘All registrations’’ and inserted ‘‘or at such other time, not less than one year from the effective date thereof, as the Commission may rule, regulation, or order prescribe,’’ after ‘‘June of each year,’’. Former par. (2), which provided that registration under this section becomes effective thirty days after the receipt of such application by the Commission, or within such shorter period of time as the Commission may deter- mine, was struck out. Pars. (3) to (6). Pub. L. 95–405, § 9(1), redesignated pars. (4) to (7) as (3) to (6), respectively. Former par. (3) re- designated (2). Statutory Notes and Related Subsidiaries 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. § 6o. Fraud and misrepresentation by commodity trading advisors, commodity pool operators, and associated persons (1) It shall be unlawful for a commodity trad- ing advisor, associated person of a commodity trading advisor, commodity pool operator, or as- sociated person of a commodity pool operator, by use of the mails or any means or instrumen- tality of interstate commerce, directly or indi- rectly— (A) to employ any device, scheme, or artifice to defraud any client or participant or pro- spective client or participant; or (B) to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or participant or prospective client or participant. (2) It shall be unlawful for any commodity trading advisor, associated person of a com- modity trading advisor, commodity pool oper- ator, or associated person of a commodity pool operator registered under this chapter to rep- resent or imply in any manner whatsoever that such person has been sponsored, recommended, or approved, or that such person’s abilities or qualifications have in any respect been passed upon, by the United States or any agency or of- ficer thereof. This section shall not be construed to prohibit a statement that a person is reg- istered under this chapter as a commodity trad- ing advisor, associated person of a commodity trading advisor, commodity pool operator, or as- sociated person of a commodity pool operator, if such statement is true in fact and if the effect of such registration is not misrepresented. (Sept. 21, 1922, ch. 369, § 4o, as added Pub. L. 93–463, title II, § 205(a), Oct. 23, 1974, 88 Stat. 1399; amended Pub. L. 95–405, § 10, Sept. 30, 1978, 92 Stat. 870; Pub. L. 97–444, title II, § 214, Jan. 11, 1983, 96 Stat. 2305.) Editorial Notes AMENDMENTS 1983—Par. (1). Pub. L. 97–444 made the antifraud pro- hibition applicable to an associated person of a com- modity trading advisor or a commodity pool operator. Par. (2). Pub. L. 97–444 made the misrepresentation prohibition applicable to an associated person of a com- modity training advisor or a commodity pool operator, authorized registration statements of such persons, and substituted ‘‘such person’’ and ‘‘such person’s abilities’’ for ‘‘he’’ before ‘‘has been sponsored’’ and ‘‘his abili- ties’’, respectively. 1978—Par. (1). Pub. L. 95–405 struck out ‘‘registered under this chapter’’ after ‘‘pool operator’’. Statutory Notes and Related Subsidiaries 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. § 6o–1. Transferred Editorial Notes CODIFICATION Section, Sept. 21, 1922, ch. 369, § 4q, formerly § 4p, as added Pub. L. 106–554, § 1(a)(5) [title I, § 121], Dec. 21, 2000, 114 Stat. 2763, 2763A–404, and renumbered, which related to special procedures to encourage and facili- tate bona fide hedging by agricultural producers, was transferred to section 6q of this title. § 6p. Standards and examinations (a) The Commission may specify by rules and regulations appropriate standards with respect to training, experience, and such other quali- fications as the Commission finds necessary or desirable to insure the fitness of persons re- quired to be registered with the Commission. In connection therewith, the Commission may pre- scribe by rules and regulations the adoption of written proficiency examinations to be given to applicants for registration and the establish- ment of reasonable fees to be charged to such applicants to cover the administration of such examinations. The Commission may further pre- scribe by rules and regulations that, in lieu of examinations administered by the Commission, futures associations registered under section 21 of this title, contract markets, or derivatives transaction execution facilities may adopt writ- ten proficiency examinations to be given to ap- plicants for registration and charge reasonable fees to such applicants to cover the administra- tion of such examinations. Notwithstanding any other provision of this section, the Commission may specify by rules and regulations such terms and conditions as it deems appropriate to pro- Page 74 TITLE 7—AGRICULTURE § 6q 1 So in original. Probably should be capitalized. tect the public interest wherein exception to any written proficiency examination shall be made with respect to individuals who have dem- onstrated, through training and experience, the degree of proficiency and skill necessary to pro- tect the interests of customers, clients, pool participants, or other members of the public with whom such individuals deal. (b) The Commission shall issue regulations to require new registrants, within six months after receiving such registration, to attend a training session, and all other registrants to attend peri- odic training sessions, to ensure that registrants understand their responsibilities to the public under this chapter, including responsibilities to observe just and equitable principles of trade, any rule or regulation of the Commission, any rule of any appropriate contract market, deriva- tives transaction execution facility, registered futures association, or other self-regulatory or- ganization, or any other applicable Federal or state 1 law, rule or regulation. (Sept. 21, 1922, ch. 369, § 4p, as added Pub. L. 93–463, title II, § 206, Oct. 23, 1974, 88 Stat. 1400; amended Pub. L. 97–444, title II, § 215, Jan. 11, 1983, 96 Stat. 2305; Pub. L. 102–546, title II, § 210(a), Oct. 28, 1992, 106 Stat. 3607; Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(11)], Dec. 21, 2000, 114 Stat. 2763, 2763A–408.) Editorial Notes CODIFICATION Another section 4p of act Sept. 21, 1922, was renum- bered section 4q and is classified to section 6q of this title. AMENDMENTS 2000—Subsec. (a). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(11)(A)], substituted ‘‘title, contract markets, or derivatives transaction execution facilities’’ for ‘‘title or contract markets’’. Subsec. (b). Pub. L. 106–554, § 1(a)(5) [title I, § 123(a)(11)(B)], inserted ‘‘derivatives transaction execu- tion facility,’’ after ‘‘contract market,’’. 1992—Pub. L. 102–546 designated existing provisions as subsec. (a) and added subsec. (b). 1983—Pub. L. 97–444 substituted ‘‘persons required to be registered with the Commission’’ for ‘‘futures com- mission merchants, floor brokers, and those persons as- sociated with futures commission merchants or floor brokers’’ in first sentence, ‘‘customers, clients, pool participants, or other members of the public with whom such individuals deal’’ for ‘‘the customers of fu- tures commission merchants and floor brokers’’ in last sentence, and in second and third sentences struck out ‘‘as futures commission merchants, floor brokers, and those persons associated with futures commission mer- chants or floor brokers,’’ after ‘‘applicants for registra- tion’’. Statutory Notes and Related Subsidiaries 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 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. REGULATIONS Pub. L. 102–546, title II, § 210(b), Oct. 28, 1992, 106 Stat. 3607, provided that: ‘‘The Commodity Futures Trading Commission shall issue the regulations required by sec- tion 4p(b) of the Commodity Exchange Act [7 U.S.C. 6p(b)], as added by subsection (a), no later than one hundred and eighty days after the date of enactment of this Act [Oct. 28, 1992].’’ § 6q. Special procedures to encourage and facili- tate bona fide hedging by agricultural pro- ducers (a) Authority The Commission shall consider issuing rules or orders which— (1) prescribe procedures under which each contract market is to provide for orderly de- livery, including temporary storage costs, of any agricultural commodity enumerated in section 1a(9) of this title which is the subject of a contract for purchase or sale for future delivery; (2) increase the ease with which domestic ag- ricultural producers may participate in con- tract markets, including by addressing cost and margin requirements, so as to better en- able the producers to hedge price risk associ- ated with their production; (3) provide flexibility in the minimum quan- tities of such agricultural commodities that may be the subject of a contract for purchase or sale for future delivery that is traded on a contract market, to better allow domestic ag- ricultural producers to hedge such price risk; and (4) encourage contract markets to provide information and otherwise facilitate the par- ticipation of domestic agricultural producers in contract markets. (b) Report Within 1 year after December 21, 2000, the Commission shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the steps it has taken to implement this section and on the activities of contract markets pursuant to this section. (Sept. 21, 1922, ch. 369, § 4q, formerly § 4p, as added Pub. L. 106–554, § 1(a)(5) [title I, § 121], Dec. 21, 2000, 114 Stat. 2763, 2763A–404; renumbered § 4q, Pub. L. 110–234, title XIII, § 13105(d), May 22, 2008, 122 Stat. 1434, and Pub. L. 110–246, § 4(a), title XIII, § 13105(d), June 18, 2008, 122 Stat. 1664, 2196; Pub. L. 111–203, title VII, § 721(e)(3), July 21, 2010, 124 Stat. 1671.) Editorial Notes CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 both renumbered this section as section 4q of act Sept. 21, 1922. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246 ef- fective May 22, 2008, the date of enactment of Pub. L. 110–234. Section was formerly classified to section 6o–1 of this title. AMENDMENTS 2010—Subsec. (a)(1). Pub. L. 111–203 substituted ‘‘sec- tion 1a(9)’’ for ‘‘section 1a(4)’’.