CFTC Letter 02-37: Extension of Time to File Annual Reports for Y Fund Combined and Related Funds

CFTC Letter 02-37
CFTC Letter No. 02-37
April 5, 2002
Exemption
Division of Trading and Markets
Dear:
This is in response to your letter dated March 28, 2002 to the Division of Trading and Markets (“Division”) of the Commodity Futures Trading Commission (“CFTC”), requesting an extension of time until April 30, 2002 to file the December 31, 2001 Annual Report for Y Fund Combined; YY Fund: A; YYY Fund: B; YYYY Fund: C; and, YYYYY Fund: D (the “Funds”). The request is filed on behalf of X Corp., the commodity pool operator (“CPO”) for the Funds. Rule 4.22(f)(1) allows a CPO to request an extension in the event that the CPO cannot distribute an Annual Report for a pool that it operates within 90 days after the end of the pools’ fiscal year without substantial undue hardship. The request must include detailed supporting documentation to justify the need for the extension. The CPO must also provide a letter from the pool’s independent public accountant addressing certain questions specified in Rule 4.22(f)(1). In support of your request you state, among other things, that the Funds are subcompartments of a Luxembourg based registered Sicav (a Luxembourg based corporate investment structure) named Y Fund. Further, because Y Fund is a Luxembourg-domiciled Fund the audit process includes a two-step verification process involving parties from New York, where the day-to-day activities are handled, and Luxembourg, who are required to have sign-off of the audit. This added complexity when combined with the complete closure and de-registration of X necessitates an extension to April 30, 2002. Therefore, based upon the representations made in your letter, the Division believes that granting the request on behalf of X is neither contrary to the purposes of Rule 4.22 nor to the public interest. Accordingly, pursuant to the authority delegated by Rule 140.93(a)(1), the Division hereby grants your request. This exemption is conditioned upon the CPO providing a certified Annual Report to all Pool participants no later than April 30, 2002. This exemption is applicable to Y solely with respect to the Funds. This exemption applies solely with respect to the extension of time to file the 2002 annual report and shall not excuse X or the Funds from compliance with any other applicable requirements or prohibitions contained in the Commodity Exchange Act or in the Commission’s regulations issued thereunder. You must notify us immediately in the event that the activities or operations of the Pool change in any material respect from those as represented to us. This letter is based on the representation you have made to us. Any different, changed or omitted facts or conditions might cause us to reach a different conclusion. If you have any questions regarding this letter, file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/02letters/tm02-37.htm (1 of 2) [5/6/2010 5:43:41 PM]

CFTC Letter 02-37 please contact me or, Donald Bass, Futures Trading Specialist on my staff, at (202) 418-5462. Very truly yours, Kevin P. Walek Assistant Director (202) 418-5463 cc: Regina Theole, Compliance National Futures Association file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/02letters/tm02-37.htm (2 of 2) [5/6/2010 5:43:41 PM]