"CFTC Curtails Commodity Pool Operator Exemptions for Registered Investment Companies and Private Funds and Commodity Trading Advisor Exemptions for Their Advisers"

On February 9, 2012, the Commodity Futures Trading Commission (CFTC) issued final rules that will increase CFTC regulatory burdens for registered investment companies (RICs) and private funds that use any futures or any swaps that are subject to the CFTC’s jurisdiction. The final rules significantly narrow the only exclusion from the definition of commodity pool operator (CPO) available to publicly offered RICs and eliminate two of the private fund industry’s most heavily relied-upon exemptions from CPO and commodity trading advisor (CTA) registration. The Final Rules also will subject registered CPOs and CTAs to new systemic risk reporting requirements.

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