CFTC Staff Letter 02-75: Extension of Time to File Annual Report for Commodity Pool Operator

CFTC Letter 02-75
CFTC Letter No. 02-75
June 7, 2002
Exemption
Division of Trading and Markets
X
XX
XXX
XXXX
Dear X:
This is in response to your letter dated May 29, 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 June 14, 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 one or more collective investment vehicles. Your letter stated that additional time is needed as the financial statements from underlying funds were not received in a timely manner in order for the 2001 audited financial statements for the above Pool to be completed. Z, the independent public accounting firm selected to audit the Pool’s financial statements, has confirmed that additional information from these underlying funds is necessary in order to issue the audited 2001 financial statements for the Pool and that the extra time is necessary to complete certain auditing steps necessary for the audited Annual Report to be prepared, 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 having financial or record keeping problems. 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 file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/02letters/tm02-75.htm (1 of 2) [5/6/2010 5:52:29 PM]