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CFTC approves final rule on registration and compliance for CPOs and CTAs

Tarbert says rule closes a loophole for "bad actors" and will enhance customer protections

4 June 2020

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The U.S. Commodity Futures Trading Commission voted 5-0 on a final rule related to registration and compliance requirements for commodity pool operators (CPOs) and commodity trading advisors (CTAs) at a June 4 meeting held via teleconference. 

CFTC Chairman Heath Tarbert said the rule closes a loophole for "bad actors" and will enhance customer protections and public confidence in the integrity of the derivatives markets. Specifically, under the final rule, a CPO that claims an exemption from registration would be required to certify that neither the CPO nor any of its principals has in its background "conduct that would result in automatic statutory disqualification.” That conduct includes financial crimes such as embezzlement, extortion, fraud, and misappropriation.

The final rule does not apply to CPOs that are family offices, but Tarbert said the agency's swap dealer and intermediary oversight division will investigate how many family office managers would be prohibited from claiming the exemption if they were also covered. 

Official Statements and Documents

 

 

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