RegAlert2009-05-21 | CFTC Staff Letter 09-02Added · Updated
CFTC Staff Letter 09-02: No-Action Relief for General Partner of Commodity Pool from CPO Registration
The Division of Clearing and Intermediary Oversight provides no-action relief to entity A from registering as a commodity pool operator under Section 4m(1) of the Commodity Exchange Act, allowing entity B, a registered CPO, to serve as the Pool's CPO instead. This relief applies to A solely in its capacity as general partner, provided that B remains registered and serves as the CPO, and requires A and B to execute a written acknowledgement of joint and several liability for any violations. The Division will not recommend enforcement against A for failure to register, but A remains subject to all other applicable Act provisions, including antifraud rules and reporting requirements, and the relief is prospective only.
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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 aradhakrishnan@cftc.gov Division of Clearing and Intermediary Oversight Ananda Radhakrishnan Director CFTC Letter No. 09-02 May 21, 2009 No-Action Division of Clearing and Intermediary Oversight Re: Section 4m(1) Dear :
This is in response to your letter dated March 16, 2009, to the Division of Clearing and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission”), as supplemented by e-mail messages from “X”, of your office, dated March 18 and March 19, 2009, and by telephone conversations between “X” and Division staff (collectively, the “correspondence”). By the correspondence, you seek relief on behalf of “A” from the requirement to register with the Commission as a commodity pool operator (“CPO”) under Section 4m(1) of the Commodity Exchange Act (the “Act”)1 in connection with serving as the general partner of the Pool, such that “B”, a registered CPO, may serve as the Pool’s CPO instead. Based upon the representations made in the correspondence, we understand the facts to be as follows: The Pool was formed as a limited partnership in September 2007. While “A” is its general partner, “A” has delegated all of its management authority to “B”, the Pool’s investment manager and a registered CPO. As is explained in the correspondence, this structure is intended to facilitate the favorable tax treatment of performance allocations to the owners of “A”.2
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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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