House of Representatives Adopts Amendment Regarding Registered Fund CPOs and CTAs; Passes CFTC Reauthorization Bill

June 24, 2014

TO: ACCOUNTING/TREASURERS COMMITTEE No. 17-14
CLOSED-END INVESTMENT COMPANY MEMBERS No. 22-14
COMPLIANCE MEMBERS No. 13-14
DERIVATIVES MARKETS ADVISORY COMMITTEE No. 42-14
ETF (EXCHANGE-TRADED FUNDS) COMMITTEE No. 14-14
ETF ADVISORY COMMITTEE No. 12-14
INVESTMENT ADVISER MEMBERS No. 22-14
SEC RULES MEMBERS No. 25-14
SMALL FUNDS MEMBERS No. 14-14
UNIT INVESTMENT TRUST MEMBERS No. 6-14
VARIABLE INSURANCE PRODUCTS ADVISORY COMMITTEE No. 3-14 RE: HOUSE OF REPRESENTATIVES ADOPTS AMENDMENT REGARDING REGISTERED FUND CPOs AND CTAs; PASSES CFTC REAUTHORIZATION BILL

 

Today, the U.S. House of Representatives voted to adopt Representative Garrett’s amendment (“Garrett Amendment”) to the Commodity Futures Trading Commission reauthorization bill, H.R. 4413 (the Customer Protection and End User Relief Act), and passed the reauthorization bill.  The Garrett Amendment would exclude from the definitions of commodity pool operator (“CPO”) and commodity trading advisor (“CTA”) under the Commodity Exchange Act those investment advisers to registered investment companies that invest in commodity interests limited to “financial commodities,” e.g., S&P 500 swaps and other securities-like derivatives, and do not invest in traditional commodities, such as natural resource and agricultural commodities. *  The Senate must consider CFTC reauthorization next, although the timing of its consideration and the content of any Senate bill are uncertain. 

 

Sarah A. Bessin
Senior Counsel

Rachel H. Graham
Senior Associate Counsel

endnotes

* For the text of the Garrett Amendment, and ICI's letter of support, please see ICI Memorandum No. 28220 (June 19, 2014), available at http://www.ici.org/my_ici/memorandum/memo28220.