Commodity Trading Advisor Regulation - Hearings & Testimony

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Dodd-Frank Timeline, CPO/CTA Registration, CFTC
Final Rule Issue Effective Date Compliance Date
February 9, 2012 July 2, 2012 by December 2012*
Dodd-Frank Timeline, Investment Adviser Reporting, Joint SEC-CFTC Rulemaking
Final Rule Issue Effective Date Compliance Date
November 16, 2011 March 31 2012 June 15, 2012*

Hearings and testimony addressing the regulatory requirements for commodity trading advisors (CTAs) and commodity pool operators (CPOs).

CFTC Staff Roundtable on Changes to Registration and Compliance Requirements for CTAs and CPOs, July 6, 2011[edit]

On July 6, 2011, the CFTC held a public roundtable to discuss issues related to registration and compliance regime for commodity pool operators and commodity trading advisors. Issues addressed:


Among the provisions of the Dodd-Frank Act are requirements that the CFTC and SEC enhance regulations concerning commodity pools and other private funds. According to Section 404 of Dodd-Frank, the SEC and CFTC may require any investment adviser "to maintain such records of, and file with the Commission such reports regarding, private funds advised by the investment adviser, as necessary and appropriate in the public interest and for the protection of investors, or for the assessment of systemic risk..."<ref>Dodd-Frank Changes to Investment Adviser Regulation. Montgomery, McCracken, Walker & Rhoads, LLP. Retrieved on July 29, 2011.</ref>

In addition to systemic risk, Dodd-Frank, also calls for enhanced consumer protections. To this end, CFTC rule proposals have suggested changes to marketing and disclosure requirements.

Summary of the Roundtable[edit]

  • All participants made specific requests for harmonization of rules between the CFTC and SEC, as well as the Internal Revenue Service. Some complained of lack of clarity in new registration requirements, especially for dual registrants. IRS guidance should not be overstepped by the CFTC.
  • SEC and CFTC harmonization concerns were also discussed regarding disclosure requirements. Participants cited FINRA rules on prospectus summary disclosure as an example of regulatory discrepancy.
  • There was universal agreement that commissions should adopt electronic filing systems for disclosure.
  • In commodity pools, registration responsibility should remain with affiliated CTAs (or other advisors), rather than shift to CPOs.
  • There were suggestions that the commissions will have met the requirements of Dodd-Frank with disclosure documents such as Form ADV, Form PF, and CPO-PQR, and that additional reporting requirements are not necessary.

To view Part 4 of the Commodity Exchange Act, including Parts 4.5 and 4.13 - the rules targeted for change in CFTC proposals - click here.


CTA/CPO Roundtable, July 6, 2011, Part 1

CTA/CPO Roundtable, July 6, 2011, Part 2

Documents Related to CFTC Staff Roundtable, July 6, 2011: List of Participants[edit]



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