CFTC Staff Letter 14-28: No-Action Position on CPO Registration for Collective Trading Vehicles

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. 14-28
No-Action
February 28, 2014
Division of Swap Dealer and Intermediary Oversight Re: Section 4m(1) Dear:
This is in response to your letter to the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission” or “CFTC”) dated May 6, 2013, as supplemented by your letter dated November 4, 2013, your e￾mail messages dated August 5, November 6 and November 25, 2013, and telephone conversations with Division staff (collectively, “Correspondence”). By the Correspondence, you request on behalf of “A” and “B”, both of which are non￾profit corporations entirely controlled by “C”, that the Division not recommend that the Commission commence an enforcement action against “A” or “B” for failure to register as a commodity pool operator (“CPO”) under Section 4m(1) of the Commodity Exchange Act (“Act”)1 with respect to the operation of accounts (“Commingled Accounts”) in which will be commingled assets of: (1) employee benefit plans for employees of churches and organizations controlled by or associated with “C” (“Church Plans”); and (2) endowments and related assets (“Endowments”) of certain non-profit corporations entirely controlled by “C” (“C” Organizations). Assets of Commingled Accounts will be allocated to collective investment vehicles and/or separate accounts, some of which will engage in commodity interest trading. Based upon the representations made in the Correspondence, we understand the relevant facts to be as follows. “C” is a non-profit corporation that acts as a general coordinating organization for “Ds” and “D” churches in the United States to promote missionary activity, religious education, benevolent activities and social services. “C” is the sole member of “A” and “C” elects the approximately fifty trustees that manage “A” and that elect the officers to run 1 7 U.S.C. 6m(1) (2006). The Act may be accessed through the Commission’s Web site, www.cftc.gov.