[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR4.31]

[Page 194]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 4--COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS--Table of Contents
 
                  Subpart C--Commodity Trading Advisors
 
Sec. 4.31  Required delivery of Disclosure Document to prospective clients.

    (a) No commodity trading advisor registered or required to be 
registered under the Act may solicit a prospective client, or enter into 
an agreement with a prospective client to direct the client's commodity 
interest account or to guide the client's commodity interest trading by 
means of a systematic program that recommends specific transactions, 
unless the commodity trading advisor, at or before the time it engages 
in the solicitation or enters into the agreement (whichever is earlier), 
delivers or causes to be delivered to the prospective client a 
Disclosure Document for the trading program pursuant to which the 
trading advisor seeks to direct the client's account or to guide the 
client's trading, containing the information set forth in Secs. 4.34 and 
4.35.
    (b) The commodity trading advisor may not enter into an agreement 
with a prospective client to direct the client's commodity interest 
account or to guide the client's commodity interest trading unless the 
trading advisor first receives from the prospective client an 
acknowledgment signed and dated by the prospective client stating that 
the client received a Disclosure Document for the trading program 
pursuant to which the trading advisor will direct his account or will 
guide his trading. Where a Disclosure Document is delivered to a 
prospective client by electronic means, in lieu of a manually signed and 
dated acknowledgment the trading advisor may establish receipt by 
electronic means that use a unique identifier to confirm the identity of 
the recipient of such Disclosure Document, Provided, however, That the 
requirement of Sec. 4.33(a)(2) to retain the acknowledgment specified in 
this paragraph (b) applies equally to such substitute evidence of 
receipt, which must be retained either in hard copy form or in another 
form approved by the Commission.

[60 FR 38189, July 25, 1995, as amended at 62 FR 39115, July 22, 1997]