CFTC Decides Against Family Office Regulation

On November 29, 2012, the Commodity Futures Trading Commission issued a No-Action letter exempting family offices from registration as Commodity Pool Operators. Family Offices that qualify under SEC definition of a family office will be eligible.

The new CFTC rule does require that family offices submit a claim for exemption stating that they are in compliance with the SEC regulation § 275.202(a)(11)(G)-1. The due date for submitting a claim is December 31, 2012.

The CFTC had been considering requiring registration under the Commodities Exchange Act for family offices that trade futures contracts or even hire managers that include futures contracts in their portfolios. As a result of letters, calls, and direct advocacy by family offices, the CFTC staff studying the matter has recommended No-Action relief.

This is one more example of how family offices working together can influence the outcome of regulation in Washington. We congratulate the Private Investor Coalition and all of the family offices who wrote letters on achieving the desired outcome.

Learn more

Read the CFTC letter.