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CFTC Extends Exemptive Relief From Quarterly Account Statements

On February 20, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight issued Exemptive Relief Letter 18-05, which granted relief to a commodity pool operator (CPO) of a commodity pool operated as a “fund of funds.” The Letter provided the CPO with additional time after the end of each calendar quarter to distribute quarterly statements to pool participants, as required under CFTC regulation 4.7(b)(2), due to delays in receiving financial reports from underlying funds in which the pool invested.

The relief is conditioned on the CPO (1) distributing to all pool participants within 45 calendar days of the end of each month an account statement that includes all of the information required under CFTC regulation 4.7(b)(2) and that is signed and affirmed in accordance with CFTC regulation 4.22(h), and (2) informing current and prospective pool participants that such accounts statements will be provided within 45 calendar days after the end of the covered month.

CFTC Letter No. 18-05 is available here.

©2019 Katten Muchin Rosenman LLP


About this Author

Christian B. Hennion, Finance Attorney, Katten Muchin Law Firm

Christian B. Hennion concentrates his practice in financial services and asset management matters, including counseling fund managers, registered investment advisers and commodity trading advisors on both transactional and regulatory matters. Chris has advised a wide range of US and international managers, from start-ups to large institutions, regarding a variety of matters, including private fund launches and reorganizations, advisory engagements, Investment Advisers Act and Commodity Exchange Act compliance obligations, Securities and Exchange Commission (SEC) and Commodity Futures...

Timothy Nolan, Katten Law Firm, Chicago, Corporate Law Attorney

Timothy Nolan concentrates his practice on transactional, corporate and regulatory aspects of financial services matters. Timothy is able to provide legal services to a wide variety of clients, including proprietary trading firms, hedge funds, broker-dealers, registered investment advisers, commodity trading advisers, financial institutions and general corporate clients.

Prior to joining Katten, Timothy served as the CEO and the president of the board of directors of a small commercial real estate company and spent 10 years in the scrap recycling industry, including several years as general manager of a mid-sized company. In his time in the scrap recycling industry, Timothy worked with traders, brokers, importers and exporters, and other industry professionals around the world relating to ferrous, non-ferrous and precious metal recycling, together with paper and plastic recycling.