Overview
The CFTC’s amendments to Rule 4.5 are unnecessary, because the CFTC has not demonstrated a need for additional regulation of registered investment companies—such as mutual funds and exchange traded funds (ETFs)—and their advisers. They are also redundant, because of the layer of regulation added on top of the Securities and Exchange Commission’s (SEC) robust regulatory regime. Finally, the changes are costly, because ultimately funds and their investors will pay for these additional regulatory burdens in higher costs.
In the complaint filed with the US District Court for the District of Columbia, ICI and the Chamber charge that the CFTC’s amendment of Rule 4.5 was arbitrary and capricious, and that the CFTC violated the Administrative Procedure Act as well as the Commodity Exchange Act.
In December 2012, the Court rejected the Institute and Chamber’s challenge and upheld the CFTC’s amendments to Rule 4.5. In response, ICI and the Chamber filed an appeal with the US Court of Appeals for the District of Columbia Circuit (the Court). On June 25, 2013, the Court issued its opinion, ruling in favor of the CFTC. While ICI continues to believe that the CFTC’s recent amendments to Rule 4.5 were improperly adopted, the Institute intends to focus on ensuring that the CFTC’s regulatory regime as it evolves does not adversely affect fund investors.
News & Publications
News & Publications
ICI Congratulates Brian Quintenz on His Confirmation as CFTC Chair
Washington, DC, July XX, 2025—Today, Investment Company Institute (ICI) President and CEO Eric J. Pan released the following statement after the Senate confirmed Brian Quintenz to lead the Commodity Futures Trading Commission (CFTC): “ICI congratulates Brian Quintenz on his confirmation as the new permanent Chair of the CFTC. Brian brings years of experience and a deep understanding of the issues facing the CFTC as he returns to the agency where he previously served so effectively as a commissioner. Brian is a dedicated public servant and a visionary leader. As a new era of digital assets...
ICI Congratulates Brian Quintenz on His Nomination as CFTC Chair
Washington, DC, February 12, 2025—Today, Investment Company Institute (ICI) President and CEO Eric J. Pan released the following statement after President Trump nominated Brian Quintenz to lead the Commodity Futures Trading Commission (CFTC): “ICI congratulates Brian Quintenz on his nomination to chair the CFTC. Brian is a passionate public servant who cares deeply about fostering innovation in the marketplace. He is supremely well-qualified to lead the CFTC at this pivotal time when the agency navigates the complexities of the digital asset era. We look forward to a swift confirmation of...
ICI Statement on CFTC Proposed Rule on Margin Requirements for Uncleared Swaps
Washington, DC; October 12, 2023—Investment Company Institute (ICI) Deputy General Counsel for Markets, SMAs & CITs Sarah Bessin released the following statement regarding the Commodity Futures Trading Commission’s (CFTC) proposed amendments to its margin requirements for uncleared swaps, which would address the treatment of seeded funds and the use of certain money market funds as eligible collateral: “ICI is pleased that the CFTC has proposed rule amendments that would address well-known industry concerns regarding the treatment of seeded funds and the ability to use certain money market...
ICI Statement on CFTC Uncleared Swaps Proposal
Washington, DC; July 26, 2023—Investment Company Institute (ICI) Deputy General Counsel for Markets, SMAs & CITs Sarah Bessin released the following statement regarding the Commodity Futures Trading Commission’s (CFTC) proposed rule amendments to margin requirements for uncleared swaps: “ICI is pleased that the CFTC has moved ahead with a proposed rulemaking to adopt two of the remaining Global Markets Advisory Committee (GMAC) recommendations related to implementation of the Commission’s rules on margin for uncleared swaps. Broadening the eligibility of money market funds as collateral and...
Additional Resources
Appeal to the DC Circuit Court
- Court Opinion in Appeal Challenging CFTC Rule 4.5 (Jun 25, 2013)
- ICI, Chamber Respond to DC Circuit Decision (Jun 25, 2013)
- Reply Brief for Appellants ICI and U.S. Chamber (Apr 3, 2013)
- CFTC Brief Filed in Appeal Challenging CFTC Rule (Mar 8, 2013)
- ICI, U.S. Chamber Brief Filed in Appeal Challenging CFTC Rule (Jan 30, 2013)
- Order Granting Expedited Consideration of Appeal in Lawsuit Challenging CFTC Amendments to Rule 4.5 (Jan 15, 2013)
- ICI, U.S. Chamber File Motion for Expedited Consideration of Appeal in Lawsuit Challenging CFTC Amendments to Rule 4.5 (Jan 3, 2013)
- ICI, U.S. Chamber Appeal Challenge to CFTC Rule 4.5 to the DC Circuit (Dec 27, 2012)
- Notice of Appeal (Dec 27, 2012)
ICI-US Chamber of Commerce Legal Challenge
- Supplemental Filing In Lawsuit Challenging Rule 4.5 Amendments (Jun 17, 2013)
- U.S. District Court Rejects Challenge to CFTC Rule 4.5 Amendments (Dec 12, 2012)
- CFTC Files Reply Brief in Lawsuit Challenging Amendments to Rule 4.5; Agrees with ICI on Compliance Date for Form CPO-PQR (Oct 25, 2012)
- ICI and Chamber of Commerce File Supplemental Brief in Lawsuit Challenging Amendments to Rule 4.5 (Oct 22, 2012)
- CFTC Files Supplemental Brief in Lawsuit Challenging Amendments to Rule 4.5 (Oct 15, 2012)
- ICI, Chamber File Reply Brief in Lawsuit Challenging Amendments to Rule 4.5 (Jul 2, 2012)
- CFTC Files Initial Response to ICI/Chamber Lawsuit Challenging Amendments to Rule 4.5 (Jun 18, 2012)
- Investment Company Institute and U.S. Chamber v. CFTC: Plaintiffs' Motion of Summary Judgment (May 22, 2012)
- Case Summary: Investment Company Institute and U.S. Chamber of Commerce v. U.S. Commodity Futures Trading Commission (Apr 17, 2012)
- ICI and U.S. Chamber of Commerce File Lawsuit Challenging CFTC Rulel (Apr 17, 2012)
- Investment Company Institute-U.S. Chamber of Commerce Complaint (Apr 17, 2012)
ICI Perspective on Rule 4.5
- ICI Files Comment Letter and Cost-Benefit Analysis on CFTC Rule 4.5 Harmonization Proposal (Apr 24, 2012)
- CFTC's Cost-Benefit Analysis on Rule 4.5 Amendments: Insufficient, Incomplete, and "Unlikely [to] Survive Judicial Scrutiny" (Apr 17, 2012)
- Higher Cost and Fewer Choices: Rule 4.5's Impact on Investors (Apr 17, 2012)
- ICI and U.S. Chamber of Commerce v. CFTC (Apr 17, 2012)
- CFTC's Rule 4.5 is Government Regulation at Its Worst: A Flawed Process Produces a Flawed Rule that Increases Investors' Costs (pdf) (Apr 17, 2012)
Background
- ICI Files Comment Letter with CFTC on "Project KISS" (Sep 28, 2017)
- History of Rule 4.5 (Apr 17, 2012)
- Rule 4.5: Mutual Funds and Their Investors Benefit from Commodity Investments and Other Derivatives (Apr 17, 2012)