Disclosure Requirements And Advertising Rules For CPOs

On August 13, 2013, the Commodity Futures Trading Commission (the "CFTC") adopted final rule amendments to accept compliance with the disclosure, reporting and recordkeeping rules of the Securities and Exchange Commission (the "SEC") as substituted compliance for substantially all of Part 4 of the CFTC's Regulations, which is applicable to commodity pool operators ("CPOs") of funds registered as investment companies ("RICs") under the Investment Company Act of 1940, as amended. The adopting release widens the approach set forth in the harmonization proposals issued by the CFTC in February 2012 and provides, among other things, that if the CPO of a RIC satisfies all applicable SEC rules for such a fund as well as certain other conditions, the CPO will be deemed in compliance with certain CFTC rules. These rules cover: (1) delivery of disclosure documents to each prospective participant in any commodity pool that a CPO operates; (2) distribution of account statements to