CFTC Approves Final Rule Regarding Exemptions from Certain Compliance Requirements for Commodity Pool Operators, Commodity Trading Advisors, and Commodity Pools
Washington, D. C. — The Commodity Futures Trading Commission today
published a final rule that amends CFTC Regulation 4. 7, a provision
that provides exemptions from certain compliance requirements for
commodity pool operators (CPOs) regarding commodity pool offerings to
qualified eligible persons (QEPs) and for commodity trading advisors
(CTAs) regarding trading programs advising QEPs.
The final
rule amends various provisions of the regulation that have not been
updated since the rule’s original adoption in 1992. Specifically, the
final rule:
(1) Increases the monetary thresholds outlined in
the “Portfolio Requirement” definition that certain persons may use to
qualify as Qualified Eligible Persons;
(2) Codifies exemptive
letters allowing CPOs of Funds of Funds operated under Regulation 4. 7
to choose to distribute monthly account statements within 45 days of
the month-end;
(3) Includes technical amendments designed to
improve its efficiency and usefulness for intermediaries and their
prospective and actual QEP pool participants and advisory clients, as
well as the general public; and,
(4) Updates citations within
17 CFR Part 4, and throughout the CFTC’s rulebook, to reflect the new
structure of Regulation 4. 7.
The final rule will be
effective 60 days after publication in the Federal Register.
CPOs and CTAs must comply with the increased Portfolio
Requirement thresholds in Regulation 4. 7(a) by six months after
publication in the Federal Register.
The optional monthly
account statement reporting schedule for Funds of Funds operated under
Regulation 4. 7 is available to their CPOs as of the final rule’s
effective date, with compliance required upon election of that
schedule by the CPO.