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Forum Files Amicus Brief in CFTC Litigation

On February 6, the Forum filed an amicus brief in the lawsuit over recent changes to CFTC’s Rule 4.5 which would require certain mutual funds to register as commodity pool operators.   The brief argues that the CFTC failed to account for and justify the impact that its rule change will have on shareholders of mutual funds.  Specifically, the CFTC failed to adequately quantify the increased costs that will result from funds being dually registered and did not show how shareholders will benefit from the new rule.  In addition, the CFTC failed to consider the harm that will come to shareholders when the number of risk management strategies offered by mutual funds is inevitably reduced as a result of the rule.

The case is being appealed in the Court of Appeals for the DC Circuit.  Joining in the Forum’s brief were former SEC Chairman Richard Breeden, former Commissioners Paul Atkins, Ed Fleischman and Joe Grundfest, and former IM directors Allan Mostoff, Paul Roye and Marianne Smythe.