CFTC Staff Letter 19-05: No-Action Relief from CPO Registration for Entity B Delegates Responsibilities to Registered Entity A

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5000 mkulkin@cftc.gov
Division of Swap Dealer and
Intermediary Oversight
Matthew B. Kulkin
Director
CFTC Letter No. 19-05 No-Action February 28, 2019

February 28, 2019
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 October 31, 2018 to the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“Commission”). In the letter, you request, on behalf of “A” and “B”, that “B” receive the same relief that it received in CFTC Staff Letter No. 18-24 (“Letter 18-24”) 1 with respect to additional commodity pools (“Pools”) for which it serves as the general partner. Specifically, “A” and “B” request that the Division not recommend to the Commission an enforcement action against “B” for failing to register with the Commission as a commodity pool operator (“CPO”) under section 4m(1) of the Commodity Exchange Act (“Act”) 2 in connection with its role as the general partner of the Pools (which are listed in Appendix A), if “B” delegates certain of its responsibilities as the CPO of the Pools to “A”, which is a registered CPO, pursuant to the applicable requirements of CFTC Staff Letter No. 14-126, 3 except for criterion 6 therein. In support of your relief request, you state that all of the representations that were made in Letter 18-24 about “A” and “B”, including the representations concerning their relationship to each other and to the applicable pools in that letter, continue to be true and are applicable with respect to the Pools as well.