Alert August 13, 2013

CFTC Adopts Rule Amendments Harmonizing Compliance Obligations for CPOs of Registered Investment Companies

The CFTC adopted rule amendments designed to harmonize certain compliance obligations for commodity pool operators (“CPOs”) of registered investment companies that are required to register with the CFTC due to recent changes to CFTC Regulation 4.5.  Under the amendments, the CFTC will accept the SEC disclosure, reporting, and record-keeping requirements applicable to registered investment companies as substituted compliance for “substantially all” (in the words of the CFTC press release and related summary documents) of Part 4 of the CFTC’s regulations.  The amendments also modify certain Part 4 requirements for all CPOs by allowing use of a third party service for record-keeping purposes and permitting all CPOs and commodity trading advisors to use a disclosure document for up to 12 months (extended to 16 months for CPOs of open-end registered investment companies relying on substituted compliance).  A more detailed description of the amendments will be forthcoming.