CFTC Proposed Rule: Harmonization of Compliance Obligations for Registered Investment Companies Required to Register as Commodity Pool Operators

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Gavel.png FINAL RULE: This page refers to the proposed rulemaking CPO Compliance Obligations Harmonization. For a summary of the final rule, click here.
Timeline, Harmonization of CPO Compliance Obligations
Proposal Date Final Rule Issue Effective Date
February 24, 2012 August 22, 2013 September 23, 2013

On February 9, 2012, the CFTC unanimously approved a proposed rulemaking regarding certain compliance obligations for commodity pool operators who register with the SEC under the Investment Act of 1940. Under the rule, the CPO of any pool whose units of participation will be offered and sold pursuant to an effective registration statement under the Securities Act of 1933 (for example a commodity-linked mutual fund) may claim the relief from certain requirements such as:

To view current regulations 4.5, 4.21 and 4.22, click HERE.


On February 9, 2012, the CFTC approved a final set of rules regarding CPO registration and compliance. The rules reinstate trading criteria for registered investment companies claiming exclusion from the CPO definition under Regulation 4.5. From comment letters received in conjunction with this rule, and from a CPO/CTA Compliance Roundtable from July 16, 2011, the commission made the decision to propose an additional CPO compliance rulemaking in order to avoid "duplicative, inconsistent, and possibly conflicting, disclosure and reporting requirements.

Highlights of the Proposed Rule[edit]

The proposal addresses:

  • The timing of the delivery of disclosure requirements;
  • The requirement that a sponsor receive a signed acknowledgement of such disclosure requirements;
  • The frequency of required updates for such disclosure requirement;
  • The timing of financial reporting to participants;
  • The requirement that a CPO maintain its books and records on site; and
  • The required disclosure of fees;
  • The required disclosure of past performance;
  • The inclusion of mandatory certification language; and
  • The SEC-permitted use of a summary prospectus.

Additionally, the commission seeks comment on several questions, such as additional costs or other considerations, a possible family office exemption, and specific areas of harmonization with the SEC. The deadline for public comment was April 24, 2012.

Related Documents: Fact Sheet, Q&A, and Federal Register Entry[edit]


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