CFTC Rescinds CPO Registration Exemption; Adopts Additional Reporting Obligations


On February 9, the Commodity Futures Trading Commission adopted by a vote of 4 to 1 final rules amending its part 4 regulations governing commodity pool operators (CPOs) and commodity trading advisors (CTAs).

The amendments:

  • Rescind the exemption from CPO registration under CFTC Rule 4.13(a)(4) for CPOs of commodity pools offered privately only to certain qualified eligible persons and institutional investors;

  • Modify the annual disclosure relief to registered CPOs claiming exemption under CFTC Rule 4.7 to require that commodity pool annual financial statements be audited;

  • Require additional risk disclosures regarding swaps transactions in the CFTC disclosure documents that are required to be provided by registered CPOs and CTAs that are not relying on the disclosure exemptions provided by CFTC Rule 4.7;

  • Adopt additional reporting obligations for registered CPOs and CTAs under CFTC Rule 4.27 and new Forms CPO-PQR and CTA-PR;

  • Add limitations on futures and swaps trading by investment companies that are registered under the Investment Company Act of 1940 but that are exempt from CPO registration under CFTC Rule 4.5 (click here to view the article under Investment Companies and Investment Advisors for more information); and

  • Require annual affirmation of eligibility for exemptions from CPO and CTA registration.

Please see full article below for more information.

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