• U.S. District Court Upholds Amendments to CFTC Regulations 4.5 and 4.27 Affecting Registered Investment Companies
  • December 15, 2012
  • Law Firm: Alston Bird LLP - Atlanta Office
  • On December 12, 2012, the U.S. District Court for the District of Columbia rejected a challenge by the Investment Company Institute (ICI) and the U.S. Chamber of Commerce (“Chamber of Commerce,” and together with ICI, the “plaintiffs”) to the U.S. Commodity Futures Trading Commission’s (CFTC) amendments to CFTC Regulations 4.5 and 4.27. The amended Regulation 4.5 reinstates, with some modifications, the trading threshold and marketing restrictions for advisers to registered investment companies (“Investment Companies”) claiming an exclusion from the definition of commodity pool operator (CPO) under the CFTC regulations. The new Regulation 4.27 imposes quarterly reporting obligations on CPOs, including advisers to Investment Companies that would qualify as CPOs under the amended Regulation 4.5. The plaintiffs had sought to vacate the amended Regulation 4.5 in its entirety, and the amended Regulation 4.27 as it applies to Investment Companies.