Records to be kept by trading adviser and pool operator
19.—(1)  Every commodity trading adviser , commodity futures trading adviser, commodity pool operator and commodity futures pool operator shall keep such accounting and other records as will —
(a)sufficiently explain the transactions and financial position of his business; and
(b)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 trading adviser or commodity futures trading adviser shall be deemed to have failed to comply with paragraph (1), in relation to records, unless the records are kept in sufficient detail to show —
(a)the particulars of all his clients (including their names and addresses);
(b)a list or other record of all clients’ accounts directed by the trading adviser and of all transactions effected therefor;
(c)copies of confirmation of each transaction mentioned in sub-paragraph (b), each contract confirmation note and each monthly statement received from a commodity broker or commodity futures broker;
(d)powers of attorney and all other documents, or signed copies thereof, authorising the trading adviser to operate that client’s account on a discretionary basis;
(e)a signed and dated acknowledgment from each client that he has received and understood the contents of the disclosure statement specified in Form 1 in the Second Schedule for the trading programme pursuant to which the 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 trading adviser with any of his clients;
(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 trading adviser to any existing or prospective client, showing the first date of its distribution;
(h)an itemised record of all commodity contract or commodity futures contract transactions for the personal account of the trading adviser or of a director of the trading adviser, showing the transaction date, the quantity of contracts, the type of contracts and price, the delivery month, the commodity broker or commodity futures broker carrying the account, whether the contract was purchased or sold, and the gain or loss realised;
(i)each confirmation of a commodity contract or commodity futures contract transaction and each monthly statement furnished by a commodity broker or commodity futures broker to the trading adviser relating to the personal account of the trading adviser, or to a personal account of a director of such trading adviser; and
(j)books and records of all other transactions in all other business dealings in commodity contracts or commodity futures contracts and of all cash market transactions by the trading adviser or any of his directors.
(3)  A commodity pool operator or commodity futures pool operator shall be deemed to have failed to comply with paragraph (1), in relation to records, unless the records are kept in sufficient detail to show —
(a)an itemised daily record of each commodity contract or commodity futures contract transaction the date of such contract, the quantity of contracts, type of contract and price, delivery month, whether purchase or sale, the commodity broker or commodity futures broker carrying the account and the commodity trading adviser or commodity futures trading adviser involved, 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 every participant that he has received and understood the contents of the disclosure document as specified in Form 2 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 has received from or distributed to each participant;
(e)copies of each confirmation of a commodity contract or commodity futures contract transaction of the pool and each monthly statement for the pool received from a commodity broker or commodity futures broker;
(f)all 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 pool operator from any commodity trading adviser or commodity futures trading adviser of the pool, showing the first date of distribution or receipt;
(h)an itemised daily record of each commodity contract or commodity futures contract transaction of the pool operator for his own account and any of the directors of the pool operator, showing the transaction date, quantity of contracts, type of contract and price, delivery month, the commodity broker or commodity futures broker carrying the account, whether the contract was purchased or sold, and the gain or loss realised;
(i)each confirmation of a commodity contract or commodity futures contract transaction and each monthly statement furnished by a commodity broker or commodity futures broker to the pool operator relating to a personal account of the pool operator or to a personal account of a director of the pool operator; and
(j)books and records of all other transactions in all other activities in which the pool operator engages, including 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.