Increases Other Compliance Obligations for CPOs and CTAs
The CFTC recently adopted final rules amending regulations applicable to both CPOs and CTAs. The CFTC also proposed rules with respect to Regulation 4.5 that would require managers to managed futures mutual funds to register as CPOs. Some of the other changes included:
- CPOs subject to “lite-touch” regulation under the 4.7 exemption must now provide annual audited returns to investors in their funds
- Changes the 4.5 exemption from CPO registration for managers to managed futures mutual funds
- Requires CTAs and CPOs who file exemptions under 4.5, 4.13 and 4.14 to reconfirm the exemption on a yearly basis
- Adds new Regulation 4.27 requiring CTAs and CPOs to file Form PF, Form CPO-PQR and From CTA-PR
- Requires CTAs and CPOs to provide investors with new disclosures regarding swap transactions, if applicable
Additionally, the CFTC has proposed regulations with respect to harmonizing CFTC regulations and SEC regulations with respect to managed futures mutual funds. We will be providing additional information on these proposals in the coming days and weeks.
The full CFTC notice can be found here.
The final CFTC regulations can be found here: CPO & CTA Compliance Final Rules
Fact sheet: CTA & CPO Compliance Fact Sheet
Proposed Regulations for Managed Futures Mutual Funds: Proposed CPO Registration Requirement for Mutual Fund Managers
Cole-Frieman & Mallon LLP provides legal services to the managed futures industry. Bart Mallon can be reached directly at 415-868-5345.