Aggregated News From Investment Management Regulators

CFTC Invalidates CPO Registration Exemptions for 17 Foreign Entities


Please complete the required fields.

— The Commodity Futures Trading Commission today announced it has issued an order deeming the commodity pool operator (CPO) exemptions of 17 entities to be ineffective following a special call by the Division of Swap Dealer and Intermediary Oversight (DSIO). The order was approved by the Commission on July 7, 2020 and is effective immediately. The special call was authorized by the Commission in March 2020.

“This Commission action, and the related use of its special call authority, sends a strong message that we take our registration and exemption regime seriously,” said DSIO Director Joshua B. Sterling. “This regime is fundamental to our oversight of market participants, and we are dedicated to ensuring its integrity and to reacting swiftly when firms fail to comply with the rules.”

Each of the entities, purportedly based abroad, had claimed an exemption from CPO registration in accordance with Commission Regulation 4.13(a)(2), which provides that a person is not required to register as a CPO if:

  1. none of the pools it operates has more than 15 participants at any time; and
  1. the total gross capital contributions it receives for units of participation in all of the pools it operates or that it intends to operate do not in the aggregate exceed $400,000.

The special call was initiated in accordance with Commission Regulation 4.13(c)(1)(iii), which requires persons claiming an exemption to submit to such special calls as the Commission may make to demonstrate eligibility for and compliance with the applicable criteria for exemption.

“Working with the National Futures Association (NFA), we identified credible reason to believe that certain entities may have claimed the exemption without meeting the eligibility criteria,” added DSIO Deputy Director Amanda Olear.

Each of the entities named in the order failed to comply with its obligation to respond to the special call, which led the Commission to deem their claimed exemptions ineffective.

Each named entity’s claimed exemption has been withdrawn from NFA’s records.

Source link

Regulator Information

Abbreviation: CFTC
Jurisdiction: USA

Recent Articles

SEC Seeks Emergency Relief to Ensure Binance.US Customers’ Assets are Protected

The Securities and Exchange Commission today filed an emergency action application seeking a temporary restraining order freezing assets, directing defendants to repatriate assets held for the benefi | HOME

The Ombudsman will listen to your inquiries, complaints, and issues, review the information you provide, and help identify procedures, options, and resources.

SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency

Coinbase also charged for the unregistered offer and sale of securities in connection with its staking-as-a-service program. The Securities and Exchange Commission today charged Coinbase, Inc.

ESMA publishes follow-up report to the peer review on the Guidelines on ETFs and other UCITS issues

See the content published by the European Securities and Markets Authority (ESMA) here: Read more

Get the latest from Regulatory.News in your inbox!