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Regulatory Relief Issued for CPOs and CTAs

In response to the COVID-19 pandemic, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued no-action relief to commodity pool operators (CPOs) extending the upcoming filing deadlines for required pool quarterly reports on CFTC Form CPO-PQR, as well as annual reports and periodic account statements provided to pool participants. National Futures Association (NFA) also issued similar relief to CPOs for pool quarterly reporting requirements on NFA Form PQR and to commodity trading advisors (CTAs) for quarterly filings on NFA Form PR.

Relief for CPOs

Under the relief from the DSIO, the deadline for Small (AUM <$150 million) or Mid-Sized CPOs ($150 million< AUM <$1.5 billion) to file their CFTC Form CPO-PQR annual reports, which are typically due within 90 days after year-end for Small and Mid-Sized CPOs, has been extended to May 15, 2020. The deadline for Large CPOs to file their Q1 2020 quarterly reports on CFTC Form CPO-PQR, which would typically be due within 60 days after quarter-end, has been extended to July 15, 2020. NFA has also similarly extended its deadlines for those CPOs filing on NFA Form PQR, extending the due date for the December 31, 2019 Form PQR to May 15, 2020, and the due date for the March 31, 2020 Form PQR to July 15, 2020.

DSIO also extended the filing deadline for pool annual reports that would otherwise be required to be filed with NFA and distributed to pool participants on or before April 30, 2020, on the condition that the annual certified financial statements for the affected commodity pools are filed with NFA and distributed to pool participants no later than 45 days after the original due date for such report.

Finally, DSIO extended the deadline for distributing periodic account statements to pool participants, typically required to be distributed on either a monthly or quarterly basis under CFTC rules, for all reporting periods ending on or before April 30, 2020, on the condition that such statements are distributed to participants within 45 days of the end of the applicable reporting period(s).

CPOs that comply with the terms of the DSIO’s relief providing extended due dates for any of these reports for reporting periods ending on or before April 30, 2020 will be deemed to comply with NFA’s analogous requirements.

Relief for CTAs

NFA also granted an extension for NFA Form PR, which would ordinarily be due from registered CTAs on May 15 for the quarter ending March 31, 2020, until June 30, 2020.

Both the DSIO and NFA relief is self-effectuating and does not require a separate filing or request from firms that elect to rely upon the relief.

More information about the DSIO’s no-action relief for CPOs is available here. More information regarding relief from NFA rules for CPOs and CTAs is available here.

©2020 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...

Laura Krcmaric, Financial Services Attorney, Katten Law Firm

Laura Krcmaric represents clients in the financial services industry, focusing on regulatory and compliance work. Prior to joining Katten, Laura served as counsel for Credit Suisse, where she provided advice to the private banking and wealth management division. She also was an honors intern with the Securities and Exchange Commission.

While in law school, Laura served as a staff member and symposium editor for the North Carolina Law Review. She also was a member of the Community Development Law Clinic, representing nonprofit organizations.