Proposal to Rescind CFTC Registration Exemptions Will Affect Many Hedge Funds and Other Private Investment Funds

March 03, 2011
The Commodity Futures Trading Commission (“CFTC”) has released for public comment proposed regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act. These proposed regulations would eliminate certain CFTC exemptions widely used by sponsors of private investment funds, including hedge funds. The proposed regulations also would expand CFTC compliance obligations for certain commodity market participants. This update examines the proposed regulations and their potential impact on the fund industry.