Alert March 10, 2009

CFTC Proposes Modifications to Period Account Statements and Annual Financial Reports for CPOs

The Commodity Futures Trading Commission (the “CFTC”‘) issued for public comment a proposal to amend its regulations governing (a) the periodic account statements that commodity pool operators (“CPOs’’) are required to provide to commodity pool participants and (b) the annual financial reports that CPOs are required to provide to commodity pool participants and file with the National Futures Association (“NFA’’).  The proposed amendments would: clarify the reporting obligations of commodity pools with more than one series or class of ownership interest; clarify that the periodic account statements must disclose either the net asset value per outstanding participation unit in the pool, or the total value of a participant’s interest or share in the pool; extend the time period for filing and distributing annual reports of commodity pools that invest in other funds; codify existing CFTC staff interpretations regarding the proper accounting treatment and financial statement presentation of certain income and expense items in periodic account statements and annual reports; streamline annual reporting requirements for pools ceasing operation; and clarify and update several other requirements for periodic and annual reports prepared and distributed by CPOs.  Comments must be received by the CFTC no later than March 26, 2009.