CFTC Staff Letter 16-46: No-Action Relief from CPO and CTA Registration for Family Office

Division of Swap Dealer and Eileen T. Flaherty Intermediary Oversight Director U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-6700 Facsimile: (202) 418-5528 eflaherty@cftc.gov

CFTC Letter 16-46
No-Action
March 31, 2016
Division of Swap Dealer and Intermediary Oversight RE: Request for No-Action Relief from Commodity Pool Operator and Commodity Trading Advisor Registration on behalf of “A”

Dear :
This letter is in response to your request submitted to the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission” or “CFTC”) on July 17, 2015, (the “Correspondence”), on behalf of “A”. In the Correspondence, you request that the Division not recommend that the Commission take an enforcement action, pursuant to Section 4m(1) of the Commodity Exchange Act (“CEA”),1 against “A” for failure to register with the Commission as a commodity pool operator (“CPO”) or commodity trading advisor (“CTA”), with respect to its management of assets belonging to and provision of advisory services to its clients. Background “A” is a limited liability company that provides services to the family and descendants of the “B Family”. “A’s” services to the “B Family” include asset allocation advice, investment due diligence, investment management, recordkeeping assistance, tax advice, management and administration of the various “B Family” investment entities, real estate management, management and administration of trusts for the “B Family”, including providing trustees, as well as numerous other responsibilities. You represent that “A” may from time to time determine to invest in investment vehicles that invest in futures contracts or swaps, or directly invest in futures or swaps. You also state that “A” provides advisory services, which may include offering advice on the propriety and advisability of entering into commodity interest transactions. Through each of these avenues, direct or indirect investment exposure to