A Present for Funds of Funds: More Time for Annual Reports

December 28, 2000 (HedgeWorld.com)- 'Twas the day after Christmas, and throughout official Washington, most of the mice were quiet. But on Dec. 26, the Commodity Futures Trading Commission issued new rules extending the deadline for funds of funds to file annual reports, finalizing proposals it had announced on Nov. 7.

Funds of funds can receive automatic, 60-day extension simply by filing a notice with the CFTC and the National Futures Association.

The CFTC announced on Nov. 7 its proposal to extend the deadline and asked for comments. It received four letters, each generally supporting the new rules, although some expressed concern that the criteria for additional extensions were indefinite. The initial deadline for the filing of the annual report for a commodity pool operator that invests in other collective investment vehicles (e.g. a fund of funds,) remains 90 days after the end of the fund’s fiscal year.

A 60-day extension may be followed by further extensions if funds can show why their accountants have not been able to prepare, certify and distribute the necessary data.

“Commission staff has reviewed past extension requests and found that a substantial majority of the requests have indicated that they can complete their annual report within 150 days of the end of the commodity pool’s fiscal year,” said an explanation of the new rules in the Federal Register.

– Christopher Faille, Reporter        CFaille@HedgeWorld.com

Source: www.HedgeWorld.com

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