Links to Relevant Documents; Overview of Relevance

A joint SEC/CFTC Rule Proposal for Reporting on Form PF by Investment Advisers,  Commodity Trading Advisors, and Commodity Pool Operators to Private Funds available here


A Press Release and a Fact Sheet for new CFTC rule proposals that will effect mutual funds (registered investment companies), hedge funds, registered investment advisers, commodity pool operators, and commodity trading advisers available here

Here is a synthesized (and hopefully short enough for you) version of why this is relevant to the funds and advisory communities – registered and private, commodity and investment, Steelers and Packers (and, with all due respect to our friends in Green Bay, fuh-ged-a-baht-it; Championship No 7 is coming back to Pittsburgh).If you manage money and invest in derivatives, this is ALL very important.

Private Hedge Funds & Their Registered Investment Advisers; CPOs & CTAs

The SEC has proposed a rule that would require investment advisers registered with the SEC that advise one or more private funds to file Form PF with the SEC.  The CFTC has joined in the proposal and requires CPOs and CTAs registered with both the CFTC and SEC (dual registrants) to satisfy proposed CFTC filing requirements by filing Form PF with the SEC. Here is the summary from the joint SEC and CFTC proposal:


In summary, the report will require a description of information about the private fund, including the amount of assets under management, use of leverage, counterparty credit risk exposure, and trading and investment positions for each private fund advised by the adviser.

A similar reporting requirement – Form CPO-PSR and CTA-PR -is proposed by the CFTC with respect to CPOs and CTAs that are NOT dual registrants. These forms will be filed with the National Futures Association, similar to other required filings under the U.S. commodities laws.

CFTC Rule 4.5: Mutual Funds Wake Up

We have written about the NFA’s petition from summer 2010 on a number of different occasions here at TSR – we encourage you to go back and read those commentaries (search TSR for "Back to the Future" and / or "CFTC Rule 4.5").

Why? Because the CFTC has approved a rule proposal (not yet issued) that would, in effect, amend CFTC Rule 4.5 exemption for registered investment companies in a manner consistent with the NFA’s 2010 petition.

CFTC Rule 4.13(a)(3) and (4): Hedge Funds Wake Up

At yesterday’s meeting, the CFTC approved a rule proposal (not yet issued) that would RESCIND the registration exemptions available under these rules, which are relied on by many hedge funds for offering private funds that use futures as part of their investment strategies.

Annual Filing Requirement for Hedge Funds, Mutual Funds, CPOs, CTAs, Investment Advisers

So, you all used to claim your exemptions once and for all by filing a notice filing under any one or more of the applicable CFTC Rules – Rules 4.5, 4.13 and 4.14. Well, yesterday the CFTC proposed any person claiming exemptive or exclusionary relief under CFTC Rules 4.5, 4.13 and 4.14 to confirm their notice of claim of exemption or exclusion on an annual basis.


More to come on all of this, but wanted to get it onto your radar sooner rather than later.

Good day. Good reading. TSR



"The Commodity Futures Trading Commission ("CFTC") and the Securities and Exchange Commission ("SEC") (collectively, "we" or the "Commissions") are proposing new rules under the Commodity Exchange Act and the Investment Advisers Act of 1940 to implement provisions of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposed SEC rule would require investment advisers registered with the SEC that advise one or more private funds to file Form PF with the SEC. The proposed CFTC rule would require commodity pool operators ("CPOs") and commodity trading advisors ("CTAs") registered with the CFTC to satisfy certain proposed CFTC filing requirements by filing Form PF with the SEC, but only if those CPOs and CTAs are also registered with the SEC as investment advisers and advise one or more private funds. The information contained in Form PF is designed, among other things, to assist the Financial Stability Oversight Council in its assessment of systemic risk in the U.S. financial system. These advisers would file these reports electronically, on a confidential basis."

A Press Release and a Fact Sheet in respect of the joint rule proposal available here