CFTC Staff Letter 02-65 (No-Action): Extension of Time to File Annual Report for CPO XX

CFTC Letter 02-65
CFTC Letter No. 02-65
June 4, 2002
Exemption
Division of Trading and Markets
Dear X:
This is in response to your letter dated May 28, 2002 to the Division of Trading and Markets (“Division”) of the Commodity Futures Trading Commission (“Commission”), filed on behalf of XX, the commodity pool operator (“CPO”) for Y (the “Pool”). The CPO has claimed an extension under Commission Rule 4.22(f)(2)[1] to file the Pool’s Annual Report by May 30 (the “Extended Date”), and is now requesting an additional extension of time, until July 15, 2002, to file the Pool’s fiscal year 2001 report. Rule 4.22(f)(1) allows a CPO to request an extension in the event that the CPO cannot distribute the Annual Report for a pool that it operates within 90 days after the end of the pool’s fiscal year, as required by Rule 4.22(c), 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 that the Pool has investments in several limited partnerships, which have not issued audited annual reports for 2001. Z, the independent public accounting firm selected to audit the Pool’s financial statements, has informed you that certain information from these annual reports is necessary in order to issue the audited 2001 financial statements for the Pool. The information specified cannot be obtained in sufficient time for the Annual Report to be prepared, audited, and distributed before the Extended Date. You included in your submission a letter from Z, which states that the auditors have found nothing to date that would indicate that the Pool is not meeting the segregation or record keeping requirements of Part 4 of the Commission’s regulations. The principal purpose of financial reporting required by Rule 4.22 is to ensure that pool participants receive accurate, fair and timely information on the overall trading performance and financial condition of the pool. In light of the representations made in your letter, the Division believes that granting the request on behalf of the CPO 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), XX is hereby granted an extension until July 15, 2002 to file the 2001 Annual Report for Y. This letter applies solely with respect to the extension of time to file the Pool’s Annual Report for the fiscal year ending 2001 and in no way shall excuse XX or Y from compliance with any other applicable requirements contained in the Commodity Exchange Act[2] or in the Commission’s regulations issued thereunder. file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/02letters/tm02-65.htm (1 of 2) [5/6/2010 5:51:11 PM]