CFTC Staff Responds to FAQs Regarding Rescission/Modification of CPO/CTA Registration Exemptions


The Division of Swap Dealer and Intermediary Oversight (“DSIO”) of the Commodity Futures Trading Commission (“CFTC”) issued responses on August 14, 2012 to frequently asked questions (“FAQs”) submitted by several trade associations, the National Futures Association (“NFA”) and law firms in the wake of the CFTC’s amendments to its regulations governing commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) adopted earlier this year. The FAQs address who must register as a CPO and an associated person (“AP”) of such CPO, how to comply with the remaining CPO registration exemption under CFTC Regulation 4.13(a)(3), and various transition and compliance date issues.

The CFTC amendments rescinded the CPO registration exemption for operators of private funds who limit their investors to highly sophisticated persons (and rescinded the related exemption for advisers to private funds) and modified the exclusion relied on by operators of registered investment companies (“RICs”) from registration as a CPO or CTA under CFTC Regulations 4.5, 4.13(a)(4) and 4.14(a)(8). When the amendments were adopted, the CFTC permitted CPOs and CTAs that filed exemption/exclusion notices in accordance with these regulations prior to the effective date of the rescission/modification, April 24, 2012, to continue to operate under the prior exemption/exclusion through December 31, 2012. For commodity pools created on or after April 24, 2012, however, the rescinded exemption and unmodified exclusion can no longer be claimed by operators or advisors of such pools. On July 13, 2012, DSIO issued a no-action letter that essentially extends the effective date of the exemption rescission and the modification of the exclusion for pools launched after the issuance of the letter until December 31, 2012.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


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.

© K&L Gates LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.