The NFA urged the CFTC to extend relief granted by its proposal to amend the Commodity Pool Operator ("CPO") annual report requirements to quarterly report requirements. Currently, CFTC Rule 4.27(c)(2) requires a CPO to present all financial information included in its quarterly report in accordance with the Generally Accepted Accounting Principles ("GAAP").
Among other suggestions, the NFA recommended that the CFTC:
- amend CFTC Rule 4.27(c) to "also allow CPOs, with respect to a pool organized in a foreign jurisdiction, to present financial information in pool quarterly reports in accordance with the same accepted accounting principles/standards used to prepare the pool's Annual Report (i.e., [International Financial Reporting Standards], as well as the accounting principles, standards or practices in the U.K., Ireland, Luxembourg, and Canada)";
- extend the proposed relief to all periodic account statements that CPOs are required to distribute to pool participants under CFTC Rule 4.7(b)(2); and
- provide relief to CPOs from the audited Annual Report requirement for a pool whose first fiscal year end is a period of three months or less from the date of the pool's formation, but consider the comments of industry participants on whether the appropriate start date should be the date of the pool's formation rather than the date the pool commences trading.
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