CFTC Rescinds and Modifies Certain Exemptions to Registration for CTOs and CTAs

Simon Riveles CFTC, CPO, CTA, Private Fund Exemption

On February 9, 2012, the CFTC adopted final rules regarding changes to Part 4 of the Commission’s regulations regarding registration and compliance obligations for CPOs and CTAs. The new rules:

  • rescind registration exemptions available for commodity pool operators (“CPOs”) offering commodity pools to sophisticated and creditworthy investors under CFTC regulation 4.13(a)(4);
  • rescind relief from the certification requirement for annual reports providing certain pools offered only to qualified eligible persons under 4.7(b)(3);
  • modify the criteria for claiming relief under 4.5;
  • require annual filing of notices claiming exemptive relief; and
  • include new risk disclosures for CPOs and commodity trading advisers (“CTAs”)

The CFTC also proposed amendments to its regulations regarding requirements applicable to investment companies registered under the Investment Company Act of 1940 whose advisers will be subject to registration as commodity pool operators due to modifications to Section 4.5 that is Commission adopted above.

Here is a fact sheet released by the CFTC’s regarding adoption of the final rules. CFTC_CTA-CPO-Compliance-Fact-Sheet

Here is are the proposed rules harmonizing Section 4.5 CFTC_4.5 Harmonization

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