CFTC Grants Relief to CPO of Five-Person Pool from Annual Reporting Requirement
Commentary by Bob Zwirb
The CFTC Division of Swap Dealer and Intermediary Oversight granted relief to a commodity pool operator ("CPO") from the annual report filing requirement and the requirement that such reports contain audited annual financial statements of CFTC Rules 4.7(b)(3) and 4.22(d).
The commodity pool is operating pursuant to an exemption under Rule 4.7 and has only five participants. This letter provides relief from the requirement that the CPO must file, within 90 days of the close of the fiscal year, an annual report with the National Futures Association containing an audited financial statement, referring to the "substantial cost" such requirements would impose upon the pool. The letter allows the CPO to file a 13-month combined audited annual report for the 2016 fiscal year through January 31, 2017.
Commentary
One wonders whether there is a better, more efficient way to handle this type of relief from the annual report requirements, which often involves small pools whose life cycle overlaps two fiscal years (with the second one encompassing a "stub period" of as little as one month). Between January 2016 and July 2016, for example, the CFTC issued virtually identical relief from such requirements in 36 instances by our count.
Related Articles
-
The CFTC approved rule amendments regarding financial reports required from commodity pool operators concerning pool operations.
-
The CFTC Division of Swap Dealer and Intermediary Oversight granted relief from the annual report filing requirement to the Commodity Pool Operator of pools that operate as part of a master-feeder structure pursuant to an exemption under CFTC Rule 4.7.
-
The CFTC Division of Swap Dealer and Intermediary Oversight granted relief to several commodity pool operators from the annual report filing requirement, and from the requirement that such reports contain an audited annual financial statement.
-
The CFTC Division of Swap Dealer and Intermediary Oversight granted relief to several commodity pool operators from the annual report filing requirement and the requirement that such reports contain audited annual financial statements.