---
type: "AIHallucinationFinding"
title: "You are drafting a recordkeeping-policy section of a CCO compliance manual for a newly registered…"
citation_id: "RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q027-Sonnet46"
finding_uid: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-027--sonnet-46-websearch"
question_uid: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-027"
regulation_id: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024"
regulation_slug: "CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024"
regulation_title: "Amendments to CFTC Regulation 4.7 - Qualified Eligible Person Portfolio Requirements for CPOs and CTAs"
regulator_short_code: "CFTC"
regulatory_body_id: "CFTC-US-001"
jurisdiction_code: "US"
j_level: "J3"
ai_subject: "claude-sonnet-4-6"
ai_subject_display: "Claude Sonnet 4.6 (web search on)"
ai_subject_version: "sonnet-46-websearch"
response_failure_mode: "misstated_rule"
substrate_document_name: "R1-USC_STATUTE-00005"
substrate_document_path: "https://reglegbrief.com/substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R1-USC_STATUTE-00005/source.html"
substrate_section_anchor: "7 USC 6n(3)(A) - Books and records retention requirement"
citation_issue_types: ["Pretextual"]
audiences: ["ai_labs", "practitioners", "sector_dept"]
published_at: "2026-06-11T07:31:11.660052+00:00"
substrate_version: 1
methodology_version: "2.3"
license: "CC-BY-4.0"
resource: "https://reglegbrief.com/regulators/j3/us/cftc/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/ai-labs/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-027--sonnet-46-websearch/"
tags: ["ai-hallucination", "misstated_rule", "cftc", "cpo-cta-regulation-4-7-qep-thresholds-2024", "us"]
timestamp: "2026-06-16T00:00:00+00:00"
---

# AI Hallucination Finding: You are drafting a recordkeeping-policy section of a CCO compliance manual for a newly registered…

- **Citation ID.** `RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q027-Sonnet46`
- **Finding UID.** `US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-027--sonnet-46-websearch`
- **Regulation.** [`CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024`](/okf/regulations/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024.md) — Amendments to CFTC Regulation 4.7 - Qualified Eligible Person Portfolio Requirements for CPOs and CTAs
- **Regulator.** [`CFTC-US-001`](/okf/bodies/CFTC-US-001.md) — Commodity Futures Trading Commission
- **AI subject.** Claude Sonnet 4.6 (web search on)
- **Failure mode.** [`misstated_rule`](/okf/taxonomy/failure-modes.md)
- **Published.** 2026-06-11T07:31:11.660052+00:00

## Question put to the AI subject

You are drafting a recordkeeping-policy section of a CCO compliance manual for a newly registered CTA. The section's opening paragraph must quote verbatim the books-and-records retention requirement that 7 USC 6n(3)(A) imposes on registered CTAs and CPOs, including the specific minimum retention period and the regulator entities to whom the records must be open to inspection.

## AI subject's verbatim answer

Section 4n(3)(A) of the Commodity Exchange Act (7 U.S.C. 6n(3)(A)) imposes the following books-and-records retention requirement on registered commodity trading advisors and commodity pool operators... The minimum retention period established under CFTC Regulation 1.31, which implements this statutory requirement, is five years - with records required to be 'readily accessible' during the first two years of that five-year retention window.

## Verbatim regulator text contradicting the answer

> Every commodity trading advisor and commodity pool operator registered under this chapter shall maintain books and records and file such reports in such form and manner as may be prescribed by the Commission. All such books and records shall be kept for a period of at least three years, or longer if the Commission so directs, and shall be open to inspection by any representative of the Commission or the Department of Justice.

_Source:_ [R1-USC_STATUTE-00005](https://reglegbrief.com/substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R1-USC_STATUTE-00005/source.html)
_Section anchor:_ 7 USC 6n(3)(A) - Books and records retention requirement

## Failure mode

**`misstated_rule`** — Misstated rule — the AI gave a definite rule, threshold, or obligation that the regulator's verbatim text does not support.

## Citation-issue types

- **Pretextual** — <substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R1-USC_STATUTE-00005/source.html>

## Related concepts

- Regulation: [CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024](/okf/regulations/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024.md)
- Regulator: [CFTC-US-001](/okf/bodies/CFTC-US-001.md)
- Failure-mode taxonomy: [misstated_rule](/okf/taxonomy/failure-modes.md)
- Methodology: [v2.3](/okf/methodology.md)
- Editorial standards: [right of reply](/okf/editorial-standards.md)

## Reproduction

Citation ID: `RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q027-Sonnet46`

Resource URL (HTML view of this finding):

<https://reglegbrief.com/regulators/j3/us/cftc/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/ai-labs/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-027--sonnet-46-websearch/>

This finding is reproducible against the substrate document linked above, using the same AI subject, the same methodology version, and the verbatim question text.