Client Alert
CFTC Proposes Amendments to Compliance Obligations of CPOs and CTAs
February 04, 2011
The Investment Management Practice
On January 26, 2011, the U.S. Commodity Futures Trading Commission (the CFTC) proposed amendments to the compliance obligations of commodity pool operators (CPOs) and commodity trading advisors (CTAs) that, among others, would rescind or modify several CFTC registration exemptions and exclusions commonly relied upon by private investment fund sponsors (the Amendments). The CFTC separately proposed the Amendments shortly after the announcement of its joint proposal with the U.S. Securities and Exchange Commission (the SEC) to adopt Form PF as mandated by certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). The CFTC believes that the Amendments are necessary in order to oversee participants in the commodity futures and derivatives markets effectively in light of the recent economic turmoil and are consistent with the spirit of the Dodd-Frank Act.
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