Sec. 122. Updating standards for natural persons to meet requirements for qualified eligible persons
505 words·~2 min read·
/bill/116/hr/4895/rh/section-122A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Within 1 year after the date of the enactment of this section, the Commodity Futures Trading Commission shall adopt a rule to update its regulations governing the requirements for natural persons to be qualified eligible persons who must satisfy portfolio requirements, for the purposes of providing relief to commodity trading advisors and commodity pool operators in their dealings with qualified eligible persons pursuant to section 4.7 of title 17, Code of Federal Regulations, so that a natural person, to be a qualified eligible person who must satisfy the portfolio requirement, must meet the requirement of paragraph
(1)and the requirement of paragraph (2): The requirement of this paragraph is that the person must have— an individual net worth, or joint net worth with the spouse, if any, of the person, at the time of the opening of an exempt account or purchase of 1 or more participation units in an exempt commodity pool, to qualify the person as an accredited investor, as defined in section 230.501(a)(5) of title 17, Code of Federal Regulations, as if that regulation were amended by striking $1,000,000 and inserting $5,000,000 ; or individual income, or joint income with the spouse, if any, of the person, in excess of $500,000 in each of the 2 most recent years, and have a reasonable expectation of reaching the same income level in the current year. The requirement of this paragraph is that the person must meet a portfolio requirement under section 4.7(a)(1)(v) of title 17, Code of Federal Regulations, as if that regulation were amended— by striking $2,000,000 and inserting $5,000,000 ; by striking $200,000 and inserting $500,000 ; by striking $1,000,000 and inserting 2,500,000 ; and by striking $100,000 and inserting $250,000 . In adopting a rule pursuant to subsection (a), the Commission shall— include provisions providing for adjusting the dollar amounts referred to in subsection
(a)for inflation every three years to the nearest $1,000 to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics; and allow any natural person who meets the requirements of a qualified eligible person and is a participant in a commodity pool or the customer of a commodity trading advisor provided relief under section 4.7 of title 17, Code of Federal Regulations, before the date of any adjustment in such requirements established pursuant to this rule to remain a qualified eligible person, notwithstanding such adjustments established pursuant to this rule, if— the natural person continues to meet the requirements of qualified eligible persons pursuant to section 4.7 of title 17, Code of Federal Regulations, as in effect before the date of any adjustment in such requirements established pursuant to this rule; and the natural person does not— sell all shares of its participation in such exempt commodity pool; withdraw all assets from any account managed by such exempt commodity trading advisor; purchase any new shares of participation in such exempt commodity pool; or contribute additional assets to any account managed by such exempt commodity trading advisor.