CFTC Market Division Grants No-Action Relief from Quarterly Accounting Deadline

The CFTC Market Participants Division ("Division") granted two CPOs conditional no-action relief from the requirement to furnish pool participants with quarterly account statements within 30 days of each quarter's end.

The CPOs requested approval from the CFTC to furnish monthly financial statements to pool participants within 45 days of month's end. The Division stated that CFTC Rule 4.7(b)(3) ("Exemptions: Periodic reporting relief") requires CPOs to distribute quarterly account statements to pool participants within 30 days of each quarter end. The Division recognized that certain CPOs operate pools that are "funds of funds," which invest in third-party collective investment vehicles not managed by the CPOs and that these CPOs must first process the information received from the underlying investment vehicle and then incorporate it into the account statements to pool participants.

The Division granted the exemptive relief, conditioned on the CPOs (i) distributing within 45 days of each month's end account statements that include all of the information required in quarterly account statements under CFTC Rule 4.7; and (ii) notifying current and prospective pool participants that they will receive account statements within 45 days after the end of each month.