September 9, 2014

CFTC Staff Issues Interpretative Letter for Life Insurance Companies Investing General Account Assets

Washington, DC — The U.S. Commodity Futures Trading Commission’s (Commission) Division of Swap Dealer and Intermediary Oversight (DSIO) recently issued an interpretation of Commission Regulation 4.10(d) and Section 1a(10) of the Commodity Exchange Act (CEA), both of which define the term “commodity pool.”

Specifically, DSIO is interpreting the definition of “commodity pool” to not include a vehicle to which wholly-owned subsidiaries of a single life insurance company contribute their general account assets and which invests directly or indirectly in commodity interests. DSIO is issuing this interpretation in response to a request for relief from the American Council of Life Insurers, an industry group whose constituents represent a significant segment of the life insurance industry.

Last Updated: September 9, 2014