Exemptions and no‐action relief help funds navigate year‐end CFTC registration requirements

Abstract

Purpose

The alert endeavors to clarify the current state of play regarding the registration requirements for commodity pool operators (CPOs) and to discuss certain exemptions from registration and no‐action relief that may be applicable to sponsors of private funds.

Design/methodology/approach

The authors' approach is focused on the practical steps a fund sponsor may need to take to claim an exemption from the CPO registration requirements. The authors obtained the research from publicly available CFTC sources.

Findings

Although many private equity funds may be exempt from the CPO registration requirements, many of the CFTC's exemptions are not self‐executing and necessitate ongoing action by the fund sponsor.

Practical implications

Before entering into any swaps, a sponsor of a private fund should consider whether the swap transaction will impact any exemptive relief currently claimed by the sponsor and whether any further CFTC action is required as a result of such transaction.

Originality/value

The article should provide a roadmap of the possible exemptions from CPO registration for sponsors of private funds.

Citation

Burke, K., Hammar, J., Koff, L., Shaw‐Lorello, L., Weiss, A. and Wiggert, K. (2013), "Exemptions and no‐action relief help funds navigate year‐end CFTC registration requirements", Journal of Investment Compliance, Vol. 14 No. 1, pp. 50-54. https://doi.org/10.1108/15285811311321279