RegAlert2005-04-20 | CFTC Staff Letter 05-07Added · Updated
CFTC Staff Letter 05-07: No-Action Position on CPO and CTA Registration for Puerto Rico Investment Funds
The Division of Clearing and Intermediary Oversight will not recommend enforcement action against "U", a division of a Puerto Rico-chartered bank, or the directors of the "A" family of funds for failing to register as a commodity pool operator or commodity trading advisor under Section 4m(1) of the Commodity Exchange Act. This relief applies to entities operating funds registered under the Puerto Rico Investment Company Act, where securities are sold exclusively to Puerto Rico residents and the bank division is exempt from SEC investment adviser registration. The no-action position is contingent upon the continued accuracy of the representations regarding the funds' operations, director residency, and lack of statutory disqualification.
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U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5430
Facsimile: (202) 418-5547 jcarley@cftc.gov
Division of Clearing and
Intermediary Oversight
April 20, 2005
Re: Section 4m(1) – Request for Relief from Commodity Pool Operator and Commodity Trading Advisor Registration in Connection with the Operation of the “A” Family of Funds Administered by an Affiliate of “V” Dear :
This is in response to your letter dated February 25, 2005, to the Division of Clearing and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission”), as supplemented by your e-mail messages dated March 3, 2005 and March 8, 2005, and by telephone conversations with Division staff. By your correspondence, you request relief on behalf of “U”, a division of “V” and the directors (“Directors”) of the funds of the “A” family of funds (each a “Fund” and collectively, the “Funds”). With respect to “U”, you request relief from the requirement to register as a commodity pool operator (“CPO”) or as a commodity trading advisor (“CTA”) under Section 4m(1)1 of the Commodity Exchange Act (the “Act”), and with respect to the Directors, you request relief from the requirement to register as a CPO under
Section 4m(1), all in connection with advising and operating the Funds.
Based upon the representations made in your correspondence, we understand the facts to be as follows. The Funds are registered as investment companies under the laws of the Commonwealth of Puerto Rico.2 Each Fund has its principal place of business and maintains its books and records in Puerto Rico. The Funds propose to begin trading commodity interests. The Funds’ securities may be offered and sold only to persons who have their principal residence or place of business in Puerto Rico, and their governing documents prohibit ownership of Fund securities by anyone other than a Puerto Rico resident.
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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.