Comment Letter on Proposed Rulemaking for Amendments to CPO and CTA Compliance Obligations

MFA submitted comments to the CFTC on its proposed amendments to commodity pool operator (CPO) and commodity trading advisor (CTA) compliance obligations. We believe that the proposed CPO-PQR and CTA-PR forms could be significantly enhanced by (i) eliminating duplicative position information for dual registrants, (ii) allowing affiliated entities to file a consolidated form, (iii) addressing unique issues of FOFs, and (iv) treating the disclosure of pool distribution channels as nonpublic records. In addition, we believe that the Commissions proposed amendments to section 4.5 could be overly burdensome to some RICs and their sponsors; therefore, we propose (a) that section 4.5 be amended only with respect to the Marketing Test, and (b) that the Commission grant disclosure document delivery and Part 4 disclosure relief to CPOs offering commodity derivatives mutual funds and traditional commodity pools. Finally, while we generally support the proposal that Rule 4.7 pools be audited, we think it would be appropriate for the Commission to continue to make an exemption available in limited circumstances.

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