On September 5, 2013, the Division of Swap Dealer and Intermediary Oversight of the CFTC issued a no-action letter that confirms that CPOs of registered investment companies that consolidate their wholly-owned subsidiaries (also known as controlled foreign corporations, or “CFCs”) for financial reporting purposes may (i) report for the registered fund and its CFCs on a consolidated basis under CFTC Regulation 4.27(c); and (ii) file annual reports for the CFC with the National Futures Association (the “NFA”), to the extent required by CFTC Regulation 4.22(c), containing consolidated financial statements for the registered investment company, in lieu of a separate annual report for the CFC. The relief was a response to an April 10, 2013 letter from the Investment Company Institute and the Asset Management Group of the Securities Industry and Financial Markets Association. The no-action letter states that the CFTC will not take an enforcement action pursuant to Regulation 4.27(c) for failure to provide a separate report for the CFC to the NFA, provided that the CPO provides consolidated reports on Form CPO-PQR to the NFA in the manner described in the no-action letter. Similarly, the CFTC stated in the letter that it will not take an enforcement action pursuant to CFTC Regulation 4.22 for failure to distribute a separate annual report to the NFA for a CFC where the CPO of the CFC is also the CPO of the parent registered fund, if the CPO prepares a consolidated annual report in a manner laid out in the no-action letter for both the first annual report following the Compliance Date and all subsequent fiscal years. The no-action letter states that the relief granted in the letter is not self-executing; to rely on the relief, an eligible CPO must file a notice of claim with the CFTC as specified in the letter. The letter ultimately confirmed current practice with regard to financial reporting for CPOs of CFCs of registered investment companies; nonetheless, the letter should provide additional comfort for those CPOs that follow the letter’s prescribed procedures.