MFDF - Mutual Fund Directors Forum - Court Holds Hearing on CFTC Fund Rule test

Member Login

Request an account

Sample Banner 2

Court Holds Hearing on CFTC Fund Rule

Last Friday, a federal district court heard arguments on whether to strike a CFTC rule that would require many funds using futures, swaps and options to register with the CFTC.  The ICI and Chamber of Commerce have challenged the rule in court arguing that the CFTC did not perform an adequate cost-benefit analysis.  The Forum has filed a friend of the court brief on behalf of fund directors and shareholders.

According to Reuters, U.S. District Judge Beryl Howell gave little indication of how she might rule, but asked tough questions of each side.  She appeared sympathetic to the argument that new rules may be necessary to avoid another financial crisis.  However, she also questioned whether a complete cost-benefit analysis could have been performed considering that several portions of the rule rely on definitions to be provided in other regulations that aren’t yet finalized.  She also asked questions about the additional costs that will be passed along to fund shareholders without any identifiable benefits (a concern raised in the Forum’s brief).

  • All
  • Accounting and Audit
  • Advisory Contracts
  • Board Governance
  • Board Governance: Board Leadership
  • Board Governance: Compensation
  • Board Governance: Oversight of CCO
  • Board Governance: D&O Insurance
  • Board Governance: Self-Evaluation
  • Closed-end Funds
  • ETFs
  • Other Oversight
  • Other Oversight: Alternative Investments and Derivatives
  • Other Oversight: Custody
  • Other Oversight: Fixed Income funds
  • Other Oversight: Distribution
  • Other Oversight: Portfolio Trading
  • Other Oversight: Proxy Voting
  • Other Oversight: Securities Lending
  • Legislative News
  • Money Market Funds
  • Reference
  • Regulatory News
  • Risk
  • Shareholder Disclosure
  • Valuation
  • Webinars
  • Aaron New Tag