CFTC Adopts New Rules Requiring Advisers to Investment Companies and Private Funds to Register

March 2012
  • Print-friendly version
CFTC Adopts New Rules Requiring Advisers to Investment Companies and Private Funds to Register

At a glance

March 2012 - The CFTC amended rules to require private fund managers and SEC-registered investment companies with more than 5% of their portfolio holdings in commodity interests to register with the CFTC. The CFTC also proposed 'harmonization' rules to ease dual compliance with the SEC and CFTC.

Also adopts new reporting requirements and proposes new "harmonization" rules

On February 9, 2012, the CFTC adopted amendments to its rules to require private fund managers and SEC-registered investment companies that have portfolio holdings in commodity interests to become registered with the CFTC, unless they meet new criteria for exemption. Registration, in turn, will have a significant impact on the advisers as it will impose new CFTC-driven obligations, including new disclosures to customers and new regulatory reporting requirements.

The CFTC also proposed "harmonization" rules intended to ease the burden of complying with both the Securities and Exchange Commission (SEC) and CFTC requirements.