CFTC Provides Audit Relief To FCMs

The CFTC Division of Swap Dealer and Intermediary Oversight (the "Division") provided no-action relief allowing the auditors of futures commission merchants ("FCMs") to issue opinions in FCM annual reports that do not communicate "critical audit matters" ("CAMs"), as otherwise required by standards adopted by the Public Company Accounting Oversight Board ("PCAOB").

Under rules adopted by the PCAOB in 2017, audit reports of public companies are required to identify and communicate CAMs - i.e., matters that relate to the accounts or disclosures that are material to the financial statement - and involve especially challenging, subjective or complex auditor judgments.

The PCAOB excludes SEC-registered brokers-dealers from these requirements. The PCAOB does not have regulatory authority over CFTC registrants. This no-action relief was requested by members of the Futures Industry Association and allows auditors of FCMs to be exempt from the CAM requirement.