This private funds alert summarizes (i) a recent relief letter
issued by the CFTC harmonizing certain of its commodity pool
operator (CPO) registration exemptions with recently issued rules
by the SEC under the JOBS Act, and (ii) recent enforcement actions
by the SEC against numerous financial firms for violating the Rule
105 proscription against short selling within the restricted period
before a public offering.
CFTC Issues Exemptive Relief to CPOs Consistent with the
SEC's Adoption of Rule 506(c) under the JOBS Act
In a letter dated September 9, 2014, the CFTC granted exemptive
relief permitting CPOs who rely on CFTC Regulation 4.7(b) or
4.13(b) to engage in general solicitation or general advertising
under certain circumstances. The CFTC letter was issued in response
to the SEC's amendments to Rule 506, which implemented the JOBS
Act provisions permitting general solicitation or general
advertising in private offerings under Regulation D. Until
now, certain
