CFTC Finalizes Scaled-Back Amendments to Regulation 4.7

• 2.20.2025

In an article published by the Hedge Fund Law Report, Partners Matt Kulkin and Gretchen Passe Roin discuss the CFTC’s proposed disclosure requirements and the impact on private fund managers and their investors.

Excerpt: “CFTC Regulation 4.7 exempts commodity pool operators (CPOs) with pool participants that are “qualified eligible persons” (QEPs) and commodity trading advisors (CTAs) that advise QEPs from certain compliance obligations imposed by Part 4 of the regulations under the Commodity Exchange Act. In October 2023, the CFTC issued a notice of proposed rulemaking that would have imposed significant new disclosure requirements on CPOs and CTAs relying on Regulation 4.7, raised financial qualifications for certain QEPs and codified certain exemptive relief the CFTC routinely provides to Regulation 4.7 fund of funds pools. On September 12, 2024, the CFTC adopted the proposed higher QEP thresholds and codified the fund of funds exemptive relief (Rules).”