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How Do the New SEC/CFTC Harmonization Rules Affect Registered Funds and Their Advisers? (New York)

September 2013

Watch Recording.

The CFTC has just issued its long-awaited release on the harmonization of the CFTC’s regulations for commodity pool operators (CPOs) to registered investment companies, with the SEC’s regulations.

On April 24, 2012, the CFTC amended its CPO exclusion for operators of registered funds, Regulation 4.5. The CFTC imposed new de minimis trading limitations and a marketing test. Operators of registered funds that could not comply with amended Regulation 4.5 were required to register as CPOs by January 1, 2013. And, advisers to those funds were required to register as commodity trading advisors (CTAs) unless another exemption was available.

However, the CFTC suspended compliance with the CFTC’s disclosure, reporting and recordkeeping regulations for these CPOs and CTAs until it issued its harmonization release. This program was designed to give CPOs of registered funds and CTAs a head start on how to comply with new requirements.

The topics this program addresses include:

  • How will the new disclosure and reporting requirements affect advisers to registered funds that cannot comply with Regulation 4.5?
  • What new recordkeeping requirements will apply to registered funds and their advisers?
  • How will the new rules affect sub-advisers to registered investment companies?
  • What additional requirements apply to series companies and joint transactions?
  • When will registered fund CPOs and CTAs have to comply with the NFA’s rules, including Bylaw 1101?
  • How will the rule affect controlled foreign corporations (CFCs)?
  • When must CPOs and CTAs come into compliance?
  • What issues and questions still need clarification?

The program features speakers, who have been actively involved in both compliance with the new regulatory registration scheme and the rule-making process on behalf of both registered and private fund operators.