Series 3: 7.4.2.3. Business Disclosures

Taken from our Series 3

7.4.2.3. Business Disclosures

In addition, the disclosure document must include this information:

General characterization. The disclosure must include the pool’s name, main business address, telephone number, and form of organization. It must identify the names, business address, phone number, and form of organization of the commodity pool operator. It must also state whether the pool is privately offered, a multi-advisor pool, a principal-protected pool, or continuously offered. If the pool is not continuously offered, the closing date of the offering must be disclosed.

Business background. The document must identify the business background of the commodity pool operator, the pool’s trading manager, each major trading advisor, and the operator of each major investee in the pool over the previous five years. It must include the name and main business of that person’s employers, business associations, or business ventures and the nature of his duties.

Principal risk factors. The document must identify the principal risk factors of participating in the pool, such as its volatility, leverage, liquidity, and counterparty creditworthiness.

Investment program and use of

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