RELEASE Number
7087-14

December 19, 2014

CFTC Staff Issues No-Action Letter Providing Relief to Entities Operating Insurance-Linked Securities Issuers

Washington, DC — The U.S. Commodity Futures Trading Commission’s (Commission) Division of Swap Dealer and Intermediary Oversight (DSIO) issued a letter that provides no-action relief to entities operating issuers of insurance-linked securities (ILS Issuer) subject to specific conditions.

The operator of an ILS Issuer that meets the conditions outlined in this letter may utilize the no-action relief to be exempt from commodity pool operator (CPO) registration consistent with Commission Regulation 4.13(a)(3), with respect to the issuance of insurance-linked securities.

In addition to meeting the operational and substantive conditions of relief, an operator of an ILS Issuer must file a notice of exemption with the National Futures Association (NFA) pursuant to Commission Regulation 4.13(b) to claim the relief.

Last Updated: December 19, 2014