The CFTC has given funds of funds six more months to determine whether they needs to register as a commodity pool operator. Dodd-Frank has made interest rate and some foreign exchange derivatives “commodities” and made them subject to oversight by the CFTC. There is a December 31, 2012 deadline approaching. However, the CFTC rescinded guidance to help funds of funds determine how and when to look through their investments to determine if the fund of fund is a commodity pool.
However, the Managed Fund Association and Investment Adviser Association are concerned that their members do not yet have enough access to the underlying information from their investment funds to make the determination. And the CFTC has not issued new guidance to replace the guidance they rescinded.
This relief is not self operative. There are detailed instructions in the no-action letter stating what steps the fund manager needs to take.
I still have a problem that the is applies to a commodity pool operator, that is contingent on there actually being a commodity pool. The CFTC has not helped with that definition which still relies on the fund being organized for the purpose of trading in commodities.