Amended CFTC Rule 4.5 Appears to Impose Unnecessary Burdens on Many Mutual Fund Advisers
By: Rachel McTague
February 10, 2012
On February 8, the Commodity Futures Trading Commission (CFTC) issued amended Rule 4.5, a regulation governing commodity pool operators (CPOs), as well as a related rule proposal. Among other changes, the amendments to the rule significantly narrow the ability of registered investment advisers to rely on the rule’s exclusion from regulation as a CPO. As a result, many advisers will be required to register with the CFTC even though they are already regulated by the Securities and Exchange Commission (SEC).
ICI issued the following statement with regard to amended Rule 4.5:
ICI previously submitted a comment letter to the CFTC on the proposed rule amendments, testified on the proposal in a House hearing, and submitted a statement for a CFTC Roundtable on the subject July 6, 2011.
Rachel McTague is a Director for Media Relations at ICI.