CFTC Issues Guidance on Compliance Obligations for CPOs and CTAs


[authors: Kenneth M. Rosenzweig, Blake J. Brockway]

On August 14, the Commodity Futures Trading Commission issued a set of responses to frequently asked questions (FAQs) related to the compliance obligations of commodity pool operators (CPOs) and commodity trading advisors. The FAQs address a variety of issues and concerns that have been raised by market participants, including compliance dates, wholly owned subsidiaries, trading limits, the CPO registration exemption conferred by CFTC Regulation 4.13(a)(3), and the process for transitioning from a registration exemption under now-repealed Regulation 4.13(a)(4) to CPO registration or another exemption from registration. The FAQs indicate, for example, that the CPO of a pool that was previously exempt under Regulation 4.13(a)(4) may claim disclosure, reporting and recordkeeping relief under Regulation 4.7 even though the pool did not file the notice required under Regulation 4.7(d) as long as interests in the pool were offered and sold in a manner that was consistent with the then-effective provisions of Part 4.

The FAQs are available here.



DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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