The Commodity Futures Trading Commission (the “CFTC”) issued temporary no-action relief for commodity pool operators (“CPOs”) of funds of funds. A CPO of a fund of funds will not need to register with the CFTC until the later of June 30, 2013 or six months from the date the CFTC issues further guidance provided that (i) the fund of funds does not invest directly in commodity interest positions in excess of the levels set forth in CFTC Rules 4.5 or 4.13, (ii) the CPO does not know and could not reasonably know that the fund of funds’ indirect exposure to commodity interests exceeds the levels set forth in CFTC Rules 4.5 or 4.13 or in the prior Appendix A and (iii) the fund of funds is either a registered investment company or is compliant with the other provisions of CFTC Rule 4.13(a)(3) (i.e., the investor suitability requirements and offering and marketing restrictions). To claim this relief, a CPO must state its eligibility by making specified representations in an electronic filing with the CFTC by December 31, 2012.

Please contact an attorney in the Investment Management Group at Seward & Kissel if you have any questions regarding this no-action relief.