CFTC Staff Letter 93-50: No-Action Relief for General Partner of Commodity Pool

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DIVISION OF
TRADING AND MARKETS
COMMODITY FUTURES TR.4DING COMMISSION 2033 K Street, NW, Washington, DC 20581 (202) 254 • 8955 (202) 254-8010 Facsimile May 21, 1993 Re: Reqyest for CPO Registration Relief Dear 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 his serving as a general partner of the Fund, a limited partnership to be formed in the near future. Based upon your letter, as supplemented, we understand the facts to be as follows. B and A will act as co-general partners of the Fund. B'a application to become registered as a CPO is pending as of the date of this letter. A is the sole owner, principal, officer and employee of B. His application to become listed as a principal and registered as an associated person ("AP") of B also is pending as of the date of this letter. Inasmuch as A will be a general partner of the Fund, he also will be serving as a CPO of the Fund and, absent relief, must register as a CPO. In support of the instant request, B has provided the Division with a written acknowledgment whereby it accepts joint and several liability for any violation of the Commodity Exchange Act (the "Act") or Commission regulations thereunder committed by A in connection with his serving as a CPO of the Fund. Accordingly, in light of this acknowledgment and the fact that A anticipates becoming a registered AP of B, the Division will not recommend that the Commission take any enforcement action against A for his failure to register as a CPO in connection with his serving as a general partner of the Fund. This position is, however, subject to the conditions that A will not, except in his capacity as an AP of B, exercise discretion, supetvision or control over or take part in: (1) the solicita￾tion, 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 of the Fund. In addition,