A London-based private fund manager with more than $4 billion in assets under management recently settled NFA charges that it improperly advanced funds from its investment pools to its affiliates and engaged in other misconduct and compliance failures. The action is notable both because substantive NFA-enforcement proceedings are relatively uncommon and because certain of the pools involved in the prohibited affiliate transactions were exempt from registration under CFTC Regulation 4.13(a)(3). The action serves as a reminder that NFA members operating exempt pools are nevertheless subject to NFA rules and that compliance will be audited by the NFA during examinations. This article discusses the NFA allegations set forth in the complaint and the terms of the settlement. For more on NFA membership, see “CFTC Requires Most Registered Commodity Pool Operators, Commodity Trading Advisors and Introducing Brokers to Join the NFA” (Sep. 17, 2015); “K&L Gates Investment Management Seminar Addresses Compliance Obligations for Registered CPOs and CTAs, OTC Derivatives Trading, SEC Examinations of Private Fund Managers and the JOBS Act (Part One of Two)” (Jan. 30, 2014); and “CPO Compliance Series: Registration Obligations of Principals and Associated Persons (Part Three of Three)” (Feb. 7, 2013).