RegAlert1993-11-03 | CFTC Staff Letter 93-108Added · Updated
CFTC Staff Letter 93-108 (No-Action): CTA Registration Relief for Trust Company Sub-Adviser to Offshore Investment Companies
The Division of Trading and Markets grants no-action relief to entity W, a trust company, for failing to register as a commodity trading advisor (CTA) while providing commodity interest trading advice to certain offshore investment companies. This relief is contingent upon the foreign funds not soliciting U.S. persons, W not holding itself out as a CTA, and W submitting to special compliance calls by the Division. The Division also agrees not to recommend enforcement against entity Y, the Bermuda-based appointer of W, provided Y is incorporated and operates outside the United States and conducts no U.S. business. This relief applies solely to these activities and does not excuse compliance with antifraud provisions or other applicable regulations.
CFTC published 6 documents in the last 30 days — get each new one by email the day it lands.
. }-·
COMMODTI'Y FUTURES TRADING COMMISSION
2033 K Street, NW, Washington, DC 20581
(202) 254-8955
(202) 254-8010 Facsimile
. DIVISION OF
!TRADING AND MARKETS
!
!
Re: Regyest for Relief from Registration as a GTA Dear This is in response to your letter dated August 26, 1993, as ~upplemented by telephone conversations with staff of the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("Commission") in which you request, on behalf of "W", that the Division not recommend that the Commission take any enforcement action against "W" for failure to register as a commodity trading advisor ("CTA") in connection with •w••s providing commodity interest trading advice to certain offshore investment companies. Based upon the representations made in your letter, as supp~emented, we understand the relevant facts to be as follows. "W" is a wholly-owned subsidiary of "X", a Massachusetts corpora- tion that is the holding company for a group of financial service companies known as "Z". Specifically, "W" is a trust company whose principal business is providing investment management services to institutional clients. As a trust company, •w• is excluded from the term •investment adviser" under Sections 202(a) (2) and 202(a) (11) of the Investment Advisers Act of 1940. "Y" is a Bermuda corporation and a part of "Z's" international group. It provides investment management services to foreign-based institutional clients, and in particular, investment companies incorporated under the laws of foreign jurisdictions (the "Foreign Funds"). You represent that shares of each Foreign Fund have not and will not be solicited or offered for sale in the United States. Moreover, each Foreign Fund's prospectus and organizational documents state that its shares may not be sold to United States persons ("U.S. persons") Y In this !' The term "U.S. Person" as used in the Foreign Funds' organizational documents is modeled after the "U.S. Person" definition
- set forth in Regulation S under the Securities Act of 1933, 17
C.F.R. 230.902(o) (1992). This definition is similar, although (continued ... )
Read the rest free, and get an email when CFTC publishes again
Lineage: In force
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
More like this from CFTC
CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.