RegAlert2017-07-18 | CFTC Staff Letter 17-40Added · Updated
CFTC Staff Letter 17-40: No-Action Relief from CPO Registration for Entity B via Delegation to Registered Entity A
The Division of Swap Dealer and Intermediary Oversight grants no-action relief to entity B from registering as a commodity pool operator under section 4m(1) of the Commodity Exchange Act, provided that entity B delegates its CPO responsibilities to entity A, a registered CPO. This relief applies despite entity B and entity A not being under common control, a deviation from standard criteria, on the condition that they remain jointly and severally liable for any violations of the Act or Commission regulations. The Division will not recommend enforcement action against entity B for failing to register, contingent upon the accurate representations regarding the delegation of investment management authority, maintenance of books and records in Japan, and the absence of entity B's participation in solicitation or property management.
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U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000 eflaherty@cftc.gov
Division of Swap Dealer and
Intermediary Oversight
Eileen T. Flaherty
Director
CFTC Letter No. 17-40
No-Action
July 18, 2017
Division of Swap Dealer and Intermediary Oversight Re: Request For No-Action Relief from the Requirement to Register as a Commodity Pool Operator under Section 4m(1) of the Commodity Exchange Act Dear :
This is in response to your letter dated June 2, 2015 to the Division of Swap Dealer and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (the “Commission” or the “CFTC”) and subsequent email and telephonic correspondence (together with the June 2, 2015 letter, the “Correspondence”). In the letter, you request, on behalf of “A” and “B”, that “B” receive relief from the requirement to register with the Commission as a commodity pool operator (a “CPO”) under section 4m(1) of the Commodity Exchange Act (the “Act”)1 in connection with its role as trustee of certain commodity pools (the “Pools”). Instead, you state that “B” will delegate certain of its responsibilities as the CPO of the Pools to “A” pursuant to the applicable requirements of CFTC Staff Letter No. 14-126 (“Letter 14-126”),2 except for criterion 6 therein as discussed below. Background On May 12, 2014, the Division issued CFTC Staff Letter No. 14-69 (“Letter 14-69”), which was in response to numerous requests asking that the Division provide no-action relief for failure to register as a CPO under section 4m(1) of the Act, if another person would serve as the registered CPO of the commodity pool at issue (the “Designated CPO”) in lieu of the requesting CPO (the “Delegating CPO”). Letter 14-69 developed a standardized, streamlined approach pursuant to which the Division addressed these types of relief requests, and set forth certain requirements that were based on prior staff no-action letters. On October 15, 2014, the Division issued Letter 14-126, which was a further refinement of the relief addressed in Letter 14-69. Like Letter 14-69, Letter 14-126 provided no-action
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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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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.