Overview
- The Market Participants Division issued a December 19 no-action letter to the Managed Funds Association restoring QEP-style relief for private pools sold in nonpublic offerings, including Rule 506(c) offerings.
- Eligible advisers must be SEC-registered, file Form PF for the relevant pools, and have a reasonable belief that all investors qualify as QEPs at the time of investment or reliance.
- Reliance requires an email notice to CFTC staff and an annual affirmation of eligibility, and the letter confirms parallel relief from CTA registration for the covered pools.
- CPOs that deregister solely under this relief are not required to provide investors a mandatory redemption right under CFTC Rule 4.13(e).
- Exempt reporting advisers and SEC registrants that do not file Form PF are excluded, and the relief stays in place while the CFTC considers formal rulemaking, with analysts noting expected compliance-cost savings and greater flexibility to use commodity interests.