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CFTC Provides No-Action Relief From Commission Regulation 4.7(b)(2) Reporting Requirements

The Division of Swap Dealer and Intermediary Oversight (DSIO or Division) of the Commodity Futures Trading Commission (Commission or CFTC) recently granted no-action relief from the reporting requirements of CFTC Rule 4.7(b)(2) to a commodity pool operator (CPO) of two commodity pools, subject to certain conditions. CFTC Rule 4.7(b)(2) places a reporting requirement on a CPO that relies on such rule to distribute quarterly account statements to commodity pool participants within 30 days after the end of each quarter.

The CPO, in its letter requesting relief, stated that each commodity pool for which it was requesting relief was a “fund of funds,” and that it was not administratively feasible for such pools to meet the 30-day deadline for distributing their own account statements, due to their reliance upon information from the account statements received from the underlying funds in which such pools invest (which the CPO indicated were often received only a few days prior to the deadline under the rule). The Commission accepted the CPO’s position, and granted exemptive relief conditioned upon the following:

  • The CPO must distribute to its participants account statements within 45 days after the end of each month, containing all of the information required to be included in a quarterly statement under CFTC Rule 4.7(b)(2) (and affirmed in accordance with CFTC rules); and
  • The CPO must inform current and prospective participants that such account statements will be provided within 45 days after the end of each month.
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About this Author

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

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...

312-902-5521
Gregory Uffner, Financial Services Attorney, Katten Law Firm
Associate

Gregory Uffner is an associate in the Financial Services practice. 

While in law school, Gregory was an associate editor for the Moot Court Board, a member of the Fordham Urban Law Journal and served as managing editor for the Fordham Sports Law Forum.

212.940.6485