The U.S. Commodity Futures Trading Commission voted 5-0 on a final rule related to registration and compliance requirements for commodity pool operators (CPOs) and commodity trading advisors (CTAs) at a June 4 meeting held via teleconference.
CFTC Chairman Heath Tarbert said the rule closes a loophole for "bad actors" and will enhance customer protections and public confidence in the integrity of the derivatives markets. Specifically, under the final rule, a CPO that claims an exemption from registration would be required to certify that neither the CPO nor any of its principals has in its background "conduct that would result in automatic statutory disqualification.” That conduct includes financial crimes such as embezzlement, extortion, fraud, and misappropriation.
The final rule does not apply to CPOs that are family offices, but Tarbert said the agency's swap dealer and intermediary oversight division will investigate how many family office managers would be prohibited from claiming the exemption if they were also covered.
Official Statements and Documents
- Statement of Chairman Heath P. Tarbert in Support of Final Rule Preventing Bad Actors from Relying on CPO Exemptions
- Statement of Support by Commissioner Brian Quintenz Regarding Amendments Prohibiting CPO Exemptions under Regulation 4.13 on Behalf of Persons Subject to Certain Statutory Disqualifications – Final Rule
- Statement of Commissioner Rostin Behnam Regarding Amendments to Registration and Compliance Requirements for CPOs and CTAs: Prohibiting Exemptions under Regulation 4.13 on Behalf of Persons Subject to Certain Statutory Disqualifications
- Statement of Commissioner Dawn D. Stump Regarding Final Rule Prohibiting Exemptions Under Rule 4.13 on Behalf of Persons with Certain Statutory Disqualifications
- Statement of Commissioner Dan M. Berkovitz Regarding Prohibiting Exemptions from Commodity Pool Operator Registration for Persons Subject to Certain Statutory Disqualifications
