Investment Funds Update
On May 4, 2011, the Commodity Futures Trading Commission (the "CFTC") reopened or extended the comment periods for substantially all of its proposed rules implementing the derivatives reforms of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank")1 to provide market participants and others with an additional opportunity to comment on the CFTC's Dodd-Frank rulemakings in their entirety. Closed comment periods were reopened and comment periods that were open but that were scheduled to close prior to June 3, 2011 have been extended until June 3, 2011. The CFTC has also requested comment by June 3, 2011 on the order in which it should finalize its Dodd-Frank rules.
Reopening and Extension of Comment Periods
Since Dodd-Frank was enacted on July 21, 2010, the CFTC and other regulatory agencies have proposed rules implementing the sweeping regulatory changes mandated by the legislation,2 and the CFTC has now proposed substantially all of its rules implementing the CFTC's regulatory framework for swaps under Dodd-Frank. Given this substantially complete framework for the regulation of swaps, the CFTC believes market participants and others may have additional insight into the intersection of any combination of these proposed rules, or on the proposals from a global perspective. Accordingly, the CFTC is reopening or extending the comment period for substantially all of its proposed rules implementing Title VII of Dodd-Frank. The CFTC has specifically requested comments on the costs and benefits of the proposed rules and in particular has requested additional quantitative or qualitative information relating to the costs and benefits of the proposed rules. Finally, the CFTC is also requesting comment on the order in which it should finalize its Dodd-Frank derivatives rulemakings.
All comments on the CFTC’s proposed rules implementing Title VII of Dodd-Frank that were received after the close of the originally established comment periods will be treated as if they were received during the reopened comment periods and need not be resubmitted.
For CFTC proposed rules for which the comment period was closed as of May 4, 2011, the comment period is reopened until June 3, 2011. For CFTC proposed rules for which the comment period closes between May 4, 2011 and June 3, 2011, the comment period is extended to June 3, 2011. The comment period of any proposed rule that closes after June 3, 2011 will remain open until the originally published closing date. The comment period regarding the order in which the CFTC should consider final rules will be open until June 3, 2011.
If you wish to submit a comment on any of the proposed rules implementing the CFTC’s regulatory framework for swaps under Dodd-Frank, or if you have any questions regarding this update, please contact the Sidley Austin lawyer with whom you have regular contact.
1 76 FR 25274, Reopening and Extension of Comment Periods for Rulemakings Implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act, (May 4, 2011), available at http://www.gpo.gov/fdsys/pkg/FR-2011-05-04/pdf/2011-10884.pdf.
2 Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376 (2010), available at http://www.cftc.gov./LawRegulation/OTCDERIVATIVES/index.htm.
Sidley has a premier, global practice in structuring and advising investment funds and advisers. We advise clients in the formation and operation of all types of alternative investment vehicles, including hedge funds, fund-of-funds, commodity pools, venture capital and private equity funds, private real estate funds and other public and private pooled investment vehicles. We also represent clients with respect to more traditional investment funds, such as closed-end and open-end registered investment companies (i.e., mutual funds) and exchange-traded funds (ETFs). Our advice covers the broad scope of legal and compliance issues that are faced by funds and their boards, as well as investment advisers to funds and other investment products and accounts, under the laws and regulations of the various jurisdictions in which they may operate. In particular, we advise our clients regarding complex federal and state laws and regulations governing securities, commodities, funds and advisers, including the Dodd-Frank Act, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Act of 1933, the Securities Exchange Act of 1934, the Commodity Exchange Act, the USA PATRIOT Act and comparable laws in non-U.S. jurisdictions. Our practice group consists of approximately 150 lawyers in New York, Chicago, Los Angeles, San Francisco, London, Hong Kong and Singapore.
This Sidley update has been prepared by Sidley Austin LLP for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this without seeking advice from professional advisers.
Attorney Advertising - For purposes of compliance with New York State Bar rules, our headquarters are Sidley Austin LLP, 787 Seventh Avenue, New York, NY 10019, 212.839.5300 and One South Dearborn, Chicago, IL 60603, 312.853.7000. Prior results do not guarantee a similar outcome.