As part of an effort to ease the regulatory burden, the U.S. Commodity Futures Trading Commission (CFTC) is proposing reforms to streamline registration requirements and eliminate overlap with securities regulators.
In a rule-making notice published today, the CFTC set out planned changes to registration rules for commodity pool operators and commodity trading advisors — including provisions to exempt certain advisory firms that are registered with the U.S. Securities and Exchange Commission (SEC) from CFTC registration.
In its filing, the CFTC said that an exemption for registered investment advisors and their commodity pools that are limited to sophisticated investors, “… already subject to robust SEC oversight and regulation,” would reduce overlapping regulatory requirements and streamline federal regulatory oversight.
“This proposal is yet another step to unwind overregulation and cut red tape for American businesses while still preserving market integrity,” said CFTC chairman, Michael Selig, in a release.
The deadline for providing feedback on the proposals will be 45 days following its publication in the Federal Register.