On September 9, 2014, the Division of Swap Dealer and Intermediary Oversight (“Division”) of the US Commodity Futures Trading Commission (“CFTC”) issued an exemptive letter (“Letter”) harmonizing certain CFTC restrictions on the marketing of commodity pools with recent US Securities and Exchange Commission (“SEC”) rulemaking permitting general solicitation and general advertising in connection with certain unregistered securities offerings. Specifically, the Letter will enable commodity pool operators (“CPOs”) to rely on the broad regulatory relief of CFTC Rule 4.7(b) and the CPO registration exemption in CFTC Rule 4.13(a)(3), even though interests in the applicable commodity pools may be marketed to the public.

Overview -

As part of the Jumpstart Our Business Startups Act (“JOBS Act”), Congress directed the SEC to amend its rules to permit general solicitation and general advertising in connection with certain unregistered offerings of securities pursuant to Rule 506 of Regulation D under the US Securities Act of 1933, as amended (“Securities Act”). Pursuant to that directive, in 2013, the SEC adopted Rule 506(c), which permits an issuer to engage in general solicitation or general advertising when offering and selling securities in reliance on Rule 506 if, among other things...