The Self Regulation Of The JCA
The Japan CTA Association has established the below regulations in protecting the investors.
(1) Self Regulations On The Performance Records
Since the performance data of the CTA is one of the most important factors for a client when deciding to commit their assets, by self regulating the usage of the performance record and the indication method, shall be able to secure the rightful understanding and judgement of the clients and therefore shall aim at the protection of the investors.
(2) Self Regulations On The Self Trading Of The CTA
And The Conflict Of Interest Between Contract Trades
The object of this self-regulation is to prevent any possibilities of conflicts of interest between the CTA's house account and the client account when the client commits his assets to the CTA.
(3) Self Regulations Concerning The Documents Involved In A CTA Contract
The object of this self-regulation is aimed at the matters concerning the contents and the execution regarding the commodity trading advising contract. By self regulating the documentation method and the carry out requirements when disclosing documents toward the client to conclude the contract, this regulation will enable to protect the clients and also assist in the development of the commodity trading advisors.
(4) Self Regulations Regarding Communications With The Public & Promotional Materials
This self-regulation was established for the justifiable communication with the public of the members as a commodity trading advisor. Related to this self-regulation, the communications and solicitation committee has been set up.
(5) Self Regulation For Solicitation
The object of this self-regulation is aimed at the justification of the renewal or cancellation of a contract and the solicitation toward clients concerning the commodity trading advising contract.
(6) Compliance Committee Regulations
This self-regulation of was set up for any complaints toward the members related to the commodity trading advising business. The association has established a compliance staff at each of the member firms for a quick and justifiable settlement. Furthermore, for complaints that can be regarded as violating the law or the self-regulation shall be discussed, and the committee may recommend the necessary measures toward the association.