The CFTC approved amendments to Part 4 of the CFTC Rules to (i) allow commodity pool operators ("CPOs") to use certain alternative accounting standards in preparing financial statements for non-U.S. pools, and (ii) adopt exemptions from the audit requirements for a pool's annual reports. These changes codify relief that the CFTC granted previously on a case-by-case basis through exemptive and no-action letters. The amendments will become effective on December 27, 2016.
As previously reported, the amendments specifically include: (i) use of alternative accounting standards, (ii) a "stub-period" exemption from audited annual reports, (iii) an exemption from audited annual reports for insider pools, and (iv) the requirement for at least one audited annual report during the life of a pool.
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