For Release: October 1, 2007
U.S. Commodity Futures Trading Commission Sanctions Russell Investments Ireland Limited and Russell Investments Cayman Ltd. for Failure to File Annual Reports on Time for the Commodity Pools they Operate
CFTC Order Requires the Commodity Pool Operators to Pay a Civil Monetary Penalty of $120,000
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced the issuance of an amended order filing and simultaneously settling charges against Russell Investments Ireland Limited (RIIL) and Russell Investments Cayman Ltd. (RICL), both of Tacoma, Washington. RIIL was registered with the CFTC as a Commodity Pool Operator (CPO) from June 28, 1996 through August 6, 2005, while RICL was registered with the CFTC as a CPO from July 11, 1996 through August 6, 2005.
The CFTC order finds that RIIL and RICL are CPOs for commodity pools that operate as a fund and as funds-of-funds. The fiscal year for the commodity pools operated by RIIL and RICL ends on March 31st. Accordingly, RIIL and RICL were required to file with the National Futures Association (NFA) their commodity pools’ annual reports on or around June 30th – for the fund – and August 31st– for the fund of funds. The order finds that, for the fiscal years ending March 31, 2002 and March 31, 2004, RIIL and RICL failed to file with the NFA in a timely manner any of their commodity pools’ annual reports.
The furnishing of the annual report is designed to “provide [pool] participants with the information necessary to assess the overall trading performance and financial condition of the pool.” (See Commodity Pool Operators and Commodity Trading Advisors, Final Rules, 44 Fed. Reg. 1918 (CFTC Jan. 8, 1979) (announcing the adoption of Rule 4.22).) Without timely reporting, the CFTC’s goal of providing pool participants with complete and necessary data is hampered, according to the order.
The order requires RIIL and RICL to, among other things, pay a civil monetary penalty of $120,000.
The following CFTC Division of Enforcement staff are responsible for this case: Anne Termine, Kathleen Banar, Rick Glaser, and Richard Wagner.
Last Updated: November 13, 2007