ParkRiver Fund Solutions and MIK Fund Solutions today jointly announce that they have combined resources to provide fund firms with a comprehensive solution to the new regulatory requirements of Forms CPO-PQR and CTA-PR, complementing their existing Form PF solution.
The offering will be powered by MIK's regulatory software platform, while ParkRiver will consult with managers and provide outsourced resources for the preparation of the quarterly and annual reports.
The Commodity Futures Trading Commission ("CFTC") and the National Futures Association ("NFA") have adopted new data collection and risk reporting requirements for registered Commodity Pool Operators ("CPOs") and Commodity Trading Advisors ("CTAs"). Forms CPO-PQR and CTA-PR require varying degrees of transparency including:
- Basic information about each CPO and the pools it operates
- Each pool's monthly rates of return
- The identities of significant creditors, credit counterparty exposure, trading and clearing mechanisms
- Details on asset liquidity, pool risk metrics, derivative positions, posted collateral and portfolio turnover.
The size of each CPO and its underlying pools as well as other specific characteristics of the entity (such as whether it is also filing Form PF with the SEC) determine the frequency and level of reporting required by NFA Compliance Rule 2-46, as proposed, and CFTC Rule 4.27.
A qualified team with in-depth knowledge and expertise can provide significant value in assessing the various filing requirements and handling the process of data collection, documentation and back up retention. This process can be time consuming and costly to manage in-house. Outsourcing CFTC filing requirements to a team of technology and commodity compliance specialists can be an efficient solution for funds reporting on Form CPO-PQR and CTA-PR.
Michael Coppola, CEO of ParkRiver said: "Fund managers will spend a lot of time and resources determining the best course to prepare themselves for the new reporting requirements of the SEC and CFTC coming into effect this year. At ParkRiver we are confident that our experienced team, in conjunction with MIK's software, brings both the technology y and expertise to plan and execute an efficient filing and record-keeping system. In the current environment of heightened transparency and evolving regulation, it is crucial that service providers create better solutions to relieve fund managers and let them stay focused on portfolio management. We look forward to our partnership with MIK and see this as an important step in navigating managers through this new regulatory regime."
Marshall Saffer, COO of MIK said: "As the fund industry become ever more sophisticated, regulators are taking an analytical approach to monitoring risk. Managers are adjusting rapidly to the new regulatory world in which they operate and have come to recognize and rely on expertise-based technology solutions which save them time and money. Rather than diverting important internal resources, the routinized solution provided by the ParkRiver and MIK gives managers the confidence that they are in compliance without putting undue costs on the firm. That has been our experience with SEC Form PF and we expect that to hold true over the course of reporting-based regulation, regardless of regulator or region."