Podcast Center
Video Center
Webcasts
Resource Center
Events
June 26, 2013 at 05:28 AM
The U.S. Court of Appeals for the D.C. Circuit on Tuesday rejected an appeal brought by the Investment Company Institute, upholding new rules issued by the Commodity Futures Trading Commission that will require many investment companies to register as commodity pools.
ICI came out against the ruling, stating that the CFTC’s Rule 4.5 will result in redundant regulation of registered investment companies, such as mutual funds and exchange-traded funds.
Karrie McMillan, ICI’s general counsel, said in a statement after the ruling that the court’s decision “appears to reflect its judgment that the costs and benefits of the CFTC’s expanded regulation of investment companies cannot be fully assessed until the agency completes its rulemaking to ‘harmonize’ its rules with those of the Securities and Exchange Commission.”
The court “made clear,” McMillan continued, “that it expects the costs and benefits of the harmonization rule to be carefully considered.” She said ICI continues to believe the amendments made to CFTC Rule 4.5 “were improperly adopted,” and that ICI “intends to focus on ensuring that the CFTC’s regulatory regime as it evolves does not adversely affect fund investors.”
David Hirschmann, president and CEO of the Chamber of Commerce’s Center for Capital Markets Competitiveness, agreed in the same statement issued by ICI that the CFTC’s rule “was improperly adopted and imposes duplicative compliance costs on American companies and investors.”
