CFTC Approves Final Rule Regarding Exemptions from Certain Compliance Requirements for Commodity Pool Operators, Commodity Trading Advisors, and Commodity Pools

Washington, D.C.- The Commodity Futures Trading Commission today published a final rule that amends CFTC Regulation 4.7, a provision that provides exemptions from certain compliance requirements for commodity pool operators (CPOs) regarding commodity pool offerings to qualified eligible persons (QEPs) and for commodity trading advisors (CTAs) regarding trading programs advising QEPs.

The final rule amends various provisions of the regulation that have not been updated since the rule's original adoption in 1992. Specifically, the final rule:

(1) Increases the monetary thresholds outlined in the "Portfolio Requirement" definition that certain persons may use to qualify as Qualified Eligible Persons;

(2) Codifies exemptive letters allowing CPOs of Funds of Funds operated under Regulation 4.7 to choose to distribute monthly account statements within 45 days of the month-end;

(3) Includes technical amendments designed to improve its efficiency and usefulness for intermediaries and their prospective and actual QEP pool participants and advisory clients, as well as the general public; and,

(4) Updates citations within 17 CFR Part 4, and throughout the CFTC's rulebook, to reflect the new structure of Regulation 4.7.

The final rule will be effective 60 days after publication in the Federal Register.

CPOs and CTAs must comply with the increased Portfolio Requirement thresholds in Regulation 4.7(a) by six months after publication in the Federal Register.

The optional monthly account statement reporting schedule for Funds of Funds operated under Regulation 4.7 is available to their CPOs as of the final rule's effective date, with compliance required upon election of that schedule by the CPO.