CFTC No-Action Letter 13-51 for CPOs of SEC-Registered Investment Companies Having Subs That Are Controlled Foreign Corporations

The CFTC Division of Swap Dealer and Intermediary Oversight issued a no-action letter to commodity pool operators ("CPOs") of SEC-registered investment companies that trade in commodity interests through wholly owned controlled foreign corporations ("CFCs"). The letter states that the CFTC will not take enforcement action against CPOs of registered investment companies for failure to provide both a report for their CFCs to the NFA pursuant to CFTC Rule 4.27(c) ("Additional Reporting by Advisors of Certain Large Commodity Pools") and a separate annual report pursuant to CFTC Rule 4.22(c) ("Reporting to Pool Participants"), provided that the CPOs consolidate the reports for the CFCs with those of the registered investment company and meet certain other conditions, including filing with the CFTC.

See: CFTC No-Action Letter 13-51; CFTC Press Release.See also: Quick Help Guide: CFTC's New Rules for CPOs to RICs.