CFTC Staff Letter 11-01: No-Action Relief for General Partners of Commodity Pools from CPO Registration

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. 11-01 No-Action March 22, 2011 Division of Clearing and Intermediary Oversight Re: Section 4m(1) – Request for CPO Registration Relief for Affiliated General Partners of Several Commodity Pools Dear :
This is in response to your letter dated January 10, 2011 to the Division of Clearing and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission”), as supplemented by a telephone conversation between you and Division staff on January 27, 2011, an email from you on February 23, 2011, and a telephone conversation with your associate, “A”, on February 25, 2011 (collectively, the “correspondence”). By the correspondence, you seek relief 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 on behalf of: (i) “B”, in connection with serving as the general partner of “C”; and (ii) “D”, in connection with serving as the general partner of “E”, such that “F” may serve as the CPO of each of the “C” and “E”. Based upon representations made in the correspondence, we understand the relevant facts to be as follows. “F” is registered as a CPO with the Commission. “F” has entered into certain arrangements with “B” and “D” in order to achieve more favorable tax treatment through the allocation of performance fees to “B” and “D”.2 In support of your request you represent that: