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CFTC Adopts Amendments to Rule 4.27 and Form CPO-PQR

Client memorandum | October 15, 2020

On October 6, 2020, the Commodity Futures Trading Commission (the “Commission” or the “CFTC”) voted unanimously to adopt a number of amendments to CFTC Rule 4.27 and Form CPO-PQR which are intended to facilitate better oversight of commodity pool operators (“CPOs”) and their pools by leveraging alternative data sources while simultaneously reducing regulatory reporting burdens for most CPOs required to file Form CPO-PQR by revising and streamlining existing Form CPO-PQR. Consistent with the Commission’s earlier proposal, the final rule (1) eliminates existing Schedules B and C of Form CPO-PQR, except for the Pool Schedule of Investments (“PSOI”) (question 6 on existing Schedule B); (2) amends the information requirements and instructions in existing Schedule A to (a) request legal entity identifiers (“LEIs”) for CPOs and their pools and (b) eliminate questions regarding the pool’s auditors and marketers; (3) requires all reporting CPOs to submit on a quarterly basis all information included in the revised Form CPO-PQR; (4) allows CPOs to file National Futures Association (“NFA”) Form PQR in lieu of the revised CFTC Form CPO-PQR, provided that NFA amends Form PQR to include LEIs; and (5) eliminates substituted compliance with Form CPO-PQR filing requirements via the CFTC’s and the Securities and Exchange Commission’s (“SEC”) Joint Form PF. In addition to updating the instructions to the revised Form CPO-PQR, the Commission has directed the staff to publish an updated “Frequently Asked Questions” document to assist CPOs required to complete and file the revised Form CPO-PQR.

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