On March 20, 2020 the Commodity Futures Trading Commission (the “CFTC”) Division of Swap Dealer and Intermediary Oversight (“DSIO”) issued CFTC Staff Letter 20-11 to provide reporting and filing relief for registered commodity pool operators (“CPOs”). This relief covers three topics:
- Form CPO-PQR. The due date for Form CPO-PQR filings has been extended such that small and mid-sized CPOs (i.e., CPOs with assets under management of less than $1.5 billion) have until May 15, 2020 to file reports for 2019 and large CPOs (i.e., CPOs with assets under management equal to or greater than $1.5 billion) have until July 15, 2020 to file reports for the first quarter of 2020.
- Annual Reports. A CPO with a pool annual report previously due on or before April 30, 2020 now has an additional 45 days to file such report with the National Futures Association and distribute such report to pool participants. This relief does not foreclose a CPO from requesting an additional extension of time not to exceed a total of 180 days from the end of the pool’s fiscal year consistent with CFTC regulation 4.22(f).
- Account Statements. Pool periodic account statements, which for a CPO relying on CFTC regulation 4.7 are due within 30 days after the end of each quarter, are not required to be provided until 45 days of the end of the reporting period for all reporting periods ending on or before April 30, 2020. Registrants relying on this relief are expected to establish and maintain a supervisory system that is reasonably designed to supervise the activities of personnel while acting from an alternative or remote location during the COVID-19 pandemic. DSIO further expects that as COVID-19 related risks decrease, registrants will return to compliance with all regulatory obligations from which relief has been provided.
If you have any questions regarding the foregoing, please contact any of the partners or counsel listed below or your primary attorney in Seward & Kissel’s Investment Management Group.
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