CFTC Staff Letter 93-49: No-Action Relief for Unregistered General Partner of Commodity Pool

COMMODITY FllTURES TRADING COMMISSION 2033 K Street,NW, Washington, DC 20581 (202} 254 -8955 (202) 254- 8010 Facsimile q~-1? DIVISION OF . TRADING AND MARKETS May 21, 1993 r ~ N "' en Re: Request for CPO Registration Relief il Dear f:i This is in response to your letter to the Division of Trad￾ing and Markets ("Division") dated April 27, 1993, as supple- mented by telephone conversations with Division staff, wherein you request that the Division not recommend that the Commission take any enforcement action against A for failure to register as a commodity pool operator ("CPO") in connection with its serving as a general partner of the Fund. Based upon your letter, as supplemented, we understand the facts to be as follows. You and A will act as co-general partners of the Fund. You are a registered CPO and commodity trading advisor and the sole owner and president of A. Inasmuch as A will be a general partner of the Fund, it also will be serving as a CPO of the Fund and, absent relief, must register as a CPO. In support of the instant request, you have provided the Division with a written acknowl~dgment whereby you accept joint and several liability for any violation of the Commodity Exchange Act (the "Act•) or Commission regulations thereunder committed by A in connection with its serving as a CPO of the Fund. Accordingly, in light of this acknowledgment and the fact that you are a registered CPO and the sole owner of A, the Division will not recommend that the Commission take any enforcement action against A for its failure to register as a CPO in connection with its serving as a general partner of the Fund. This position is, however, subject to tl1e conditions that A will not exercise discretion, supervision or control over or take part in: (1) the solicitation, acceptance or receipt of funds or property to be used for purchasing interests in the Fund, or (2) the investment, use or other disposition of funds or property o~ the Fund. We note that A remains subject to the anti-fraud prov1s1ons of Section 4Q of the Act, 7 U.S.C. §6Q (1988), as amended by the

• __/ Futures Trading Practices Act of 1992, Pub. L. No. 102-546, 106
  ......,
  .,::o:o c::"'oX UI(')-X r-mZO __ ,..,c; O<o.:; ::0~0-< m X..,., (') Xd o"YI-.... ::oocnc:
  O::a~::o 0,.,
  :Cfn