A fund that solicits money from investors for trading in commodity futures is subject to registration and regulation as a commodity pool operator, even if it does no trading itself, the 3rd U.S. Circuit Court of Appeals held Monday in a precedent-setting ruling.

The decision, in Commodity Futures Trading Commission v. Equity Financial Group LLC, 08-1558, could have repercussions in suits against other “feeder funds,” including those that funneled investors’ money into accounts run by Bernard Madoff in his $50 billion Ponzi scheme.