CFTC Grants CPO Relief from Quarterly Account Statement Requirement
Commentary by Bob Zwirb
The CFTC Division of Swap Dealer and Intermediary Oversight granted exemptive relief to the additional pools of a commodity pool operator ("CPO"), which previously received relief from the requirement to deliver a quarterly account statement within 30 days of the end of the quarter to pool participants pursuant to CFTC Rule 4.7(b)(2). Instead, the pools will be allowed to distribute monthly account statements within 45 days of the end of the month. The CPO cited two previous incidents of similar relief granted in CFTC Staff Letters 14-142 and 16-83.
Commentary
The 30-day deadline for issuing quarterly account statements does not make sense in circumstances involving multi-pool structures. Indeed, the staff letters that address this situation effectively concede the point. Given the frequent need to provide relief in these circumstances, and the drain on staff resources, it would seem the better route would be to amend CFTC Rule 4.7(b)(2) to accommodate those pools that cannot meet the regulatory deadline for well-established reasons rather than force them to seek individualized relief.