SEC slaps enforcement action on oil ETP for negligence, no investor loss

The US Securities and Exchange Commission (SEC) has charged the United States Oil (USO) Fund, an exchange-traded product (ETP), as well as its general partner United States Commodity Funds (USCF) for misleading statements about limitations imposed by its sole futures commission merchant and broker. Both the USO and USCF have agreed to pay US$2.5m in penalties to settle cases by the SEC and Commodity Futures Trading Commission (CFTC). According to the SEC’s order, USO’s investment ob