Third Party Recordkeeper for Commodity Pool Operators
In September 2014, the Commodity Futures Trading Commission (“CFTC”) published an Exemptive Letter (14-114) that allows commodity pool operators (“CPO”) to maintain its books and records as well as those of the commodity pools it operates with a third party record keeper. The CFTC stated in the letter that the relief would be granted if the CPO has timely access to the books and records maintained at the third party record keeper and the CPO remains responsible for compliance with the recordkeeping rules governing the books and records of the CPO and its pools. If a CPO wishes to rely on the relief allowed for in this letter, they are reminded they must continue to file statements required by CFTC Rules 4.23 and 4.7. Furthermore, CSI recommends that prior to the CPO relying on a third party record keeper to maintain the books and records of the CPO and its pools, the CPO does due diligence on the third party record keeper and ensures an sound disaster recovery plan is in place that is reviewed and tested regularly. A copy of the CFTC Exemptive Letter can be found here (ADD LINK FOR A PDF FILE TO LAUNCH IN A NEW WINDOW. I ATTACHED THE .PDF FILE).