CFTC Issues Relief to CPOs in Response to JOBS Act General Solicitation Amendments, but Uncertainties Remain
On September 9, 2014, the CFTC issued exemptive relief intended to allow most investment managers of investment pools (including private equity and hedge funds) that invest in commodity instruments (including swaps) and rely on the most common CFTC registration and compliance exemptions to engage in general solicitation by effectively conforming the CFTC rules to the previously adopted amendments by the SEC pursuant to the JOBS Act. While the exemptive relief is certainly good news for investment managers looking to engage in general solicitation, there remain uncertainties with respect to the regulation of such activities by both the SEC and the CFTC that should be considered prior to engaging in general solicitation.