CFTC Commissioner Dan M. Berkovitz urged the CFTC to revisit exemptions to certain registration and compliance regulations that were extended to family offices after the collapse of Archegos Capital Management.
Specifically, Mr. Berkovitz found the November 2019 exemption for family offices from providing notice that they are exempt from CFTC registration requirements to have "no rational justification." Mr. Berkovitz explained that the exemption, which imposes minimal notice requirements with relatively trivial costs, means that the CFTC, "unaware of the very existence of these large commodity pools, is hampered in its ability to oversee their activities, and does not even know whom to contact should issues arise."
Mr. Berkovitz also found the July 2020 exemption for persons in family offices from statutory disqualification to be equally unreasonable as it provides "financial market miscreants" with free range to operate in a family office.
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