RegAlert2000-08-09 | CFTC Staff Letter 00-86Added · Updated
CFTC Staff Letter 00-86: Exemption from Disclosure, Reporting, and Recordkeeping for Registered CPO W
The Division of Trading and Markets exempts registered commodity pool operator W from the specific disclosure requirements of Rule 4.21, financial reporting requirements of Rule 4.22, and recordkeeping requirements of Rule 4.23(a)(10) and (a)(11) regarding its operations of entities X and Y. This exemption is conditioned upon W ensuring that any offering memorandum delivered to prospective investors contains all necessary disclosures to prevent the information from being misleading. The relief applies solely to the operation of X, a holding company for real estate and restaurant entities, and Y, a special purpose entity holding liquid assets for risk management purposes.
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00-86
CFTC Letter No. 00-86
August 9, 2000
Exemption
Division of Trading & Markets
Re: Rules 4.21, 4.22 and 4.23: -- Exemption from certain disclosure and reporting requirements otherwise applicable to a registered CPO, where the CPO is the general partner of the holding company for a group of affiliated real estate and restaurant development, operation and management entities, and is also the general partner of a special purpose entity formed to hold and manage the group's liquid assets, which entity engages in commodity interest trading for risk management purposes. Dear :
This is in response to your letter dated February 28, 2000, to the Division of Trading and Markets (the "Division") of the Commodity Futures Trading Commission (the "Commission"), as supplemented by your letter dated April 4, 2000, your e-mail messages dated May 11, 2000, June 5, 2000 and July 7, 2000 and by telephone conversations with Division staff. By your correspondence, you request on behalf of your clients "W", a registered commodity pool operator ("CPO"), "X" and "Y" that the Division issue an interpretation that: (1) "W" is not a commodity pool operator ("CPO") as defined in Section 1a(4) of the Commodity Exchange Act (the "Act");1 and (2) neither "X" nor "Y" is a pool as defined in Commission Rule 4.10(d)(1).2 For the reasons provided below, we have decided to deny your request, but to provide certain relief to "W" from the requirements otherwise applicable to registered CPOs. Based upon the representations made in your correspondence, we understand the relevant facts to be as follows. "X" and "Y" "X", a limited partnership, acts as the holding company for a complex of more than twenty special purpose corporations, partnerships and joint ventures formed for investment in, and development and operation of, various real estate properties and restaurant concepts. In order to rationalize the management and administration of these entities, in January 1998 the partners and shareholders consolidated their interests in the special purpose entities into a single entity ("X"). file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/00letters/tm00-86.htm (1 of 5) [5/6/2010 6:22:18 PM]
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Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.