The Market Participants Division of the CFTC (the "Division") granted a CPO conditional no-action relief from the requirement to deliver quarterly account statements to pool participants within a specified timeframe under CFTC Rule 4.7(b)(2).
CFTC Rule 4.7(b)(2) requires CPOs to distribute quarterly account statements to pool participants within 30 days after the conclusion of each quarter. The CPO had stated that in order to provide pool participants with accurate financial information, it must first receive financial information from the underlying investment vehicles. The CPO noted, however, that it does not receive this information until the last remaining days of the 30-day period, making it difficult to comply with the rule's timeframe requirement. As a result, the CPO requested a review of its alternative proposal to provide monthly account statements to pool participants within 45 days of each month-end.
The Division granted the exemptive relief, conditioned upon (i) the CPO delivering the necessary account statements within 45 calendar days after the end of each month, and (ii) the CPO informing current and prospective pool participants that they will be provided with the account statements within 45 days after the end of the covered month.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
