CFTC Staff Letter 12-72: No-Action Position on CPO and CTA Registration for Pension Plan Group Trust Sponsor

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-6700
Facsimile: (202) 418-5547 gbarnett@cftc.gov
Division of Swap Dealer and
Intermediary Oversight
Gary Barnett
Director
CFTC Letter No. 12-72
No-Action
December 21, 2012
Division of Swap Dealer and Intermediary Oversight Re: Request for Relief from CPO and CTA Registration Dear Mr. :
This is in response to your letter to the Division of Swap Dealer and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission” or “CFTC”) dated October 11, 2012, as supplemented by a letter of “A” of your firm dated December 5, 2012 and by telephone conversations with Division staff (collectively, the “Correspondence”). By the Correspondence, you request on behalf of “B” relief from the requirements to register with the Commission as a commodity pool operator (“CPO”) and as a commodity trading advisor (“CTA”) pursuant to Section 4m(1) of the Commodity Exchange Act (the “Act”) 1 in connection with the operation of, and providing advice to, a pension plan group trust. In particular, you request relief comparable to that provided by Commission Regulations
4.5 and 4.6, 2
notwithstanding that a pension plan group trust is not a “qualifying entity” under Regulation 4.5. Based upon the representations set forth in the Correspondence, we understand the relevant facts to be as follows. “B” is an investment adviser registered as such with the Securities and Exchange Commission (“SEC”), and is the sponsor and investment manager for the “Group Trust”. The Group Trust is formed and operated exclusively to invest assets of trusts (“Participating Trusts”) that form part of certain defined benefit pension plans. 3 Each