Books and records to be kept by commodity futures trading adviser and commodity futures pool operator
20.—(1)  A commodity futures trading adviser or commodity futures pool operator shall keep or cause to be kept such accounting and other records as will sufficiently explain the transactions and financial position of his business and enable true and fair profit and loss accounts and balance-sheets to be prepared from time to time and shall cause these records to be kept in such a manner as to enable them to be conveniently and properly audited.
(2)  A commodity futures trading adviser shall be deemed not to have complied with paragraph (1) in relation to records unless those records are kept in sufficient detail to show —
(a)the particulars of all the clients (including their names and addresses);
(b)a list or other record of all clients’ accounts directed by the commodity futures trading adviser and of all transactions effected therefor;
(c)copies of each confirmation of the transaction mentioned in sub-paragraph (b), each contract confirmation note and each monthly statement received from a commodity futures broker;
(d)all powers of attorney and other documents, or signed copies thereof, authorising the commodity futures trading adviser to operate that client’s account on a discretionary basis;
(e)a signed and dated acknowledgment from the client that he has received and understood the contents of the disclosure statement as prescribed in the Second Schedule for the trading programme pursuant to which the commodity futures trading adviser will direct his account or will guide his trading;
(f)all other written agreements, or copies thereof including risk disclosure documents entered into by the commodity futures trading adviser with any of his client or subscribers;
(g)the original or a copy of each report, letter, circular, memorandum, publication, writing, advertisement or other literature or advice distributed or caused to be distributed by the commodity futures trading adviser to any existing or prospective client or subscriber, showing the first date of distribution if not otherwise shown on the document;
(h)an itemised record of every commodity futures contract transaction for the personal account of the commodity futures trading adviser or that of a director of the commodity futures trading adviser, showing the transaction date, quantity, type of commodity futures contract and price, delivery month, the futures broker carrying the account, whether the commodity futures contract was purchased or sold, and the gain or loss realised;
(i)each confirmation of a commodity futures contract transaction and each monthly statement furnished by a commodity futures broker to the commodity futures trading adviser relating to the personal account of the commodity futures trading adviser, or to a director of the commodity futures trading adviser relating to a personal account of such director; and
(j)books and records of all other transactions in all other business dealings in trading futures contracts and of all cash market transactions in which the futures trading adviser or any of its director thereof engages.
(3)  A commodity futures pool operator shall be deemed not to have complied with paragraph (1) in relation to records unless those records are kept in sufficient detail to show —
(a)an itemised daily record of each commodity futures contract transaction date, quantity, type of commodity futures contract and price, delivery month, whether purchase or sale, the commodity futures broker carrying the account and the commodity futures trading adviser, if any, and the gain or loss realised;
(b)a journal or other equivalent record showing all receipts and disbursements of money, securities and other property;
(c)a signed and dated acknowledgment from the participant that he has received and understood the contents of the disclosure document as prescribed in the Second Schedule;
(d)a subsidiary ledger or other equivalent record for each participant’s name and address and all funds, securities and other property that the pool received from or distributed to the participant;
(e)copies of each confirmation of a commodity futures contract transaction of the pool and each monthly statement for the pool received from a commodity futures broker;
(f)cancelled cheques, bank statements, journals, ledgers, invoices, computer generated records, data and memoranda prepared or received in connection with the operation of the pool;
(g)the original or a copy of each report, letter, circular, memorandum, publication, writing, advertisement or other literature or advice distributed or caused to be distributed by the commodity futures pool operator from any commodity futures trading adviser of the pool, showing the first date of distribution or receipt if not otherwise shown on the document;
(h)an itemised daily record of each commodity futures contract transaction of the commodity futures pool operator for its own account and any of the directors thereof, showing the transaction date, quantity, type of commodity futures contract and price, delivery month, the commodity futures broker carrying the account, whether the commodity futures contract was purchased, sold, and the gain or loss realised;
(i)each confirmation of a commodity futures contract transaction and each monthly statement furnished by a commodity futures broker to the commodity futures pool operator relating to a personal account of the pool operator or any of the directors of the pool operator relating to a personal account of such director; and
(j)books and records of all other transactions in all other activities in which the pool operator engages. Those books and records must include cancelled cheques, bank statements, journals, ledgers, invoices, computer generated records and all other records, data and memoranda which have been prepared in the course of engaging in those activities.