CFTC CPO Rule May Cost Advisers Up to $450,000
Investment adviser firms registering for the first time as commodity pool operators (CPOs) or commodity trade advisers (CTAs) may spend up to $450,000 to get new computer systems, software and employees up to speed with U.S. Commodity Futures Trading Commission requirements, according to Karen Barr, general counsel of the Investment Advisers Association.
The costs, which include figuring out if a firm needs to register to begin with, depend on the number of new advisers and other employees who must register, and could range anywhere from $5,000 to $450,000, Barr said in an interview with Bloomberg. She said her figures came from consultations with member firms of the IAA, which represents SEC-registered investment advisers including pensions, trusts, investment companies, endowments, foundations and corporations.
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