The House Agricultural Committee passed the CFTC authorization bill late last week, HR 2289. HR 2289 incorporates in Section 312 a provision that was part of a bill introduced by Congressman Fincher to harmonize the treatment of funds that use general solicitation. If the bill is passed, the section would have the effect of codifying the ability of funds that are commodity pools relying on either the de minimis exception from registration or on certain provisions available to registered investment advisers to use general solicitation in Rule 506 offerings. In prior posts, we had discussed the limited relief provided by the CFTC to certain funds that use general solicitation subject to compliance with certain conditions.
You can see the full text of the bill here: http://agriculture.house.gov/sites/republicans.agriculture.house.gov/files/pdf/hearings/CONAWA_006
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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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