On May 25, 2012, the Forum filed a "friend of the court" brief in a lawsuit brought by the ICI and the Chamber of Commerce seeking to overturn a recently adopted CFTC rule that will require many mutual funds using futures, swaps and options to register with the CFTC. The Forum's brief looks at the issue from the point of view of fund directors, who act as fiduciaries and representatives of shareholders who own mutual funds. The Forum filed the brief to assist the Court in understanding how the rulemaking at issue will impact the tens of millions of Americans who invest their savings in mutual funds.
The brief argues that the CFTC, in adopting the rule, did not consider the increased costs to shareholders of new dual registration with the CFTC, which will confer no regulatory benefits on mutual fund investors. Fund shareholders are already protected by the SEC's comprehensive regulatory scheme, and the CFTC provided no evidence that dual registration enhances that protection. The brief further argues that the rule will harm investors by creating a disincentive for funds to use investments in futures, options and swaps for hedging and other investment related purposes, because to do so will subject the fund to additional regulation by the CFTC.