MFA and IAA Letter to CFTC: Request for Delayed CPO and CTA Compliance Date with Respect to Funds of Funds

The MFA submitted jointly with the Investment Adviser Association ("IAA") a letter to the CFTC requesting a delayed compliance date for CPOs and CTAs of funds of funds. In the letter, the associations requested that the CFTC extend the compliance date for operators of, and advisors to, funds of funds to register or claim an exemption from registration until the later of:

• six months from the date the CFTC or its staff issues final fund of funds guidance replacing Appendix A to CFTCRule 4.13 (Exemption from Registration as a CPO); or
• June 30, 2013.

The letter discusses some of the problems that the CFTC has had in promulgating final rules as to the definition of "commodity pool," including first rescinding and then reinstating, at least temporarily, interpretative guidance. According to the letter, this back-and-forthing by the CFTC has resulted in ongoing uncertainty as to whether many funds of funds will fit within the definition of "commodity pool."

Click here to view letter in full (links externally to MFA website).Click here to view news item that links to the FAQ discussed in the attached letter.