Tag Archives: CPO

CFTC Staff Provides JOBS Act Harmonization Exemptive Relief

Attention hedge funds, private equity funds, venture capital funds and other private funds. This evening, the CFTC Division of Swap Dealer and Intermediary Oversight issued CFTC Letter 14-116 providing exemptive relief (for some funds) from the general solicitation restrictions in CFTC Rules 4.7 and 4.13(a)(3) to harmonize the CFTC rules with the SEC rules changes arising from the Jumpstart Our Business Startups Act. Until now, many private funds have been unable to take advantage of provisions in the JOBS Act permitting general solicitation of investors due to restrictions in CFTC Rules 4.7 and 4.13(a)(3).… Continue Reading

Attention Mutual Funds–Potential Relief for CPO and CTA Regulation in the 2014 CFTC Reauthorization Act

As the second part of our ongoing series on the 2014 CFTC Reauthorization Act, we wanted to highlight what could become important relief for mutual funds and their investment advisers with respect to registration as commodity pool operators or commodity trading advisers.… Continue Reading

Upcoming CFTC Roundtables: CPO Risk Management and End Users

By Andrew Cross and Tom Watterson We want to let everyone know about two upcoming CFTC Roundtables, the dates and topics are below. March 18th– Risk management procedures for CPOs, including managing investment risk, operational risk, and compliance or regulatory risk. April 3rd– Dodd-Frank issues for end-users of swaps, including recordkeeping under CFTC Rule 1.35, forward … Continue Reading

Reminder for Investment Managers of RICs of Form CPO-PQR Filing Requirements

By Tom Watterson In amending the CPO/CTA registration rules in February of 2012, the CFTC amended CFTC Rule 4.27 to require registered CTAs and CPOs to report information and data to the CFTC on Forms CTA-PR and CPO-PQR. In addition NFA rule 2-46 requires those with reporting obligations under CFTC Rule 4.27 to report Form NFA-PQR. … Continue Reading

Mutual Fund Corner: SEC Division of Investment Management Issues Guidance on Use of Derivatives

Today, the Division of Investment Management issued guidance on the use of derivatives by registered investment companies.  It is available here and is entitled "Disclosure and Compliance Matters for Investment Company Registrants that Invest in Commodity Interests".  The guidance address the following key areas: Disclosure of Derivatives and Associated Risks; Performance Presentations; Legend Requirement; and Compliance and … Continue Reading

NFA Notice I-12-20: (Soon to Be Former) CFTC Rule 4.13(a)(4) Claimants Can Now Pre-File For Exemptions Available Under Rule 4.7, 4.12 or CFTC Advisory 18-96

ATTENTION INVESTMENT FUNDS RELYING ON CFTC RULE 4.13(a)(4) – As you are most likely aware, the "4.13(a)(4)" exemption from CPO registration is on regulatory life support that will on 31 December 2012. On that date, any party relying on 4.13(a)(4) exemption will need to comply with the de minimis exemption from CPO registration under CFTC … Continue Reading

A Focus on Offshore and Non-U.S. Fund Operators & Advisers: Regulatory Exemptions from Commodity Pool Operator (CPO) & Commodity Trading Advisor (CTA) Registration – CFTC Rule 3.10

Introduction In light of the implementation of Title VII of the Dodd-Frank Act by the U.S. Commodity Futures Trading Commission ("CFTC") and consequential regulatory overhaul of the U.S. derivatives markets, many offshore investment funds and their advisers have expressed an interest in available exemptions from the registration requirements that apply to a commodity pool operator … Continue Reading