In a comment letter, the Managed Funds Association ("MFA") requested that the CFTC clarify certain provisions of proposed rules designed to simplify the regulatory obligations of commodity pool operators ("CPOs") and commodity trading advisors ("CTAs"). As previously covered, the CFTC proposed simplifying regulatory obligations for CPOs and CTAs by codifying certain staff advisories and no-action relief issued under Part 4 of the CFTC Rules.
The MFA requested that the CFTC:
- clarify the process for CPOs to comply with the proposed new requirement to disclose statutory disqualifications when claiming an exemption from CFTC registration under CFTC Rule 4.13 in light of (i) the "breadth and ambiguity" of statutory disqualifications under CEA Sections 8a(2) and 8a(3), (ii) the proposal to require CPOs that have previously claimed an exemption from registration under CFTC Rule 4.13 to disclose any statutory disqualifications as part of their annual affirmation requirement, and (iii) the possibility of unintentional violations of the securities laws of which a CPO may be unaware at the time of the violation (e.g., restrictions on short sales in connection with a public offering under Rule 105 of SEC Regulation M); and
- confirm that CPOs may rely on existing guidance under CFTC Staff Advisory 18-96 following codification of that relief into a new registration exemption for operators of offshore pools.
Comments are due by December 17, 2018.
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