CFTC Grants CPO Relief From U.S. GAAP Reporting Requirement

The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") granted exemptive relief to a commodity pool operator ("CPO") from the requirement to deliver to pool participants periodic account statements and an annual report prepared pursuant to U.S. Generally Accepted Accounting Principles ("GAAP") (as required by CFTC Rules 4.7 and ). Instead, the DSIO exemption will allow the CPO to prepare the statements pursuant to International Financial Reporting Standards ("IFRS").

The CPO operates pools through a "master-feeder" structure in which participants in a U.S. feeder fund gain exposure to a master fund that is organized under Cayman Islands law. The CPO has chosen IFRS standards to prepare required statements, and requested that the DSIO waive the requirement to prepare reports for U.S. participants in accordance with GAAP standards. The DSIO granted the exemption, provided that statements are prepared in accordance with IFRS, but reconciled to GAAP