CFTC Adopts New CPO Rules for Registered Investment Companies and Others

October 04, 2013

The U.S. Commodity Futures Trading Commission (“CFTC”) recently released its long-awaited “Final Rule” to harmonize CFTC disclosure, reporting, and recordkeeping requirements with parallel U.S. Securities and Exchange Commission (“SEC”) requirements for registered investment advisers (“RIAs”) also required to register as commodity pool operators (“CPOs”) with respect to their operation of certain investment companies (“registered funds”) registered under the U.S. Investment Company Act of 1940 as amended (“1940 Act”). In the Final Rule, the CFTC substantially changed course from the Proposed Rule. In summary, the Final Rule is “grounded in the concept of substituted compliance” but is not without some additional operational obligations, and it does not address all issues related to this new “harmonized” regime.

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