|
|
Timothy Clark Bailey McCann, Opalesque New York:
The Commodities Futures Trading Commission (CFTC) has significantly changed how hedge funds will be able to participate in commodities. Earlier this month the Commission rescinded several exemptions provided to private funds that operate commodity pools. By removing these exemptions, funds that operate commodity pools will now be required to register with the CFTC as Commodity Pool Operators (CPOs) and may be required to take certification examinations. The rules also include foreign investment advisers that have US clients.
Prior to the new rules, private funds operating commodity pools were exempted from registration with the CFTC provided that their investors were qualified purchasers or accredited investors. Now, all commodity pool operators will be required to register as such.
According to a client alert from New York-based law firm O'Melveny and Myers, the new rules also apply to foreign commodity pool operators that have US based investors. "Foreign CPOs operating a pool with at least one US
investor, will now be required to register with the CFTC and report the
entirety of their derivatives activities even if their activities are already subject to
oversight by foreign regulators.&q...................... To view our full article Click here
|
|