CFTC Approves Amended Rules For CPO Financial Reports

The CFTC approved amendments to Part 4 of the CFTC Rules that (i) allow commodity pool operators ("CPOs") to use alternative accounting standards in preparing financial statements for non-U.S. pools, and (ii) adopt exemptions from the audit requirements for a pool's Annual Reports. These changes codify relief that the CFTC granted previously on a case-by-case basis through exemptive and no-action letters. Specifically, the amendments include:

1. Use of Alternative Accounting Standards. A CPO will be permitted to use generally accepted accounting standards followed in the United Kingdom, Ireland, Luxembourg and Canada when preparing audited Annual Reports, account statements and Form CPO-PQR reports for pools established in those countries. This amendment expands CFTC Rule 4.22(d)(2), which permits CPOs to use International Financial Reporting Standards currently in preparing financial statements for non-U.S. pools' Annual Reports. CPOs that use one of the alternative