CFTC Staff Letter 94-04: No-Action Relief for Treating Non-QEP as Qualified Eligible Participant

DIVISION OF
TRADING AND MARKETS
COMMODITY FUTURES TRADING COMMISSION 2033 K Street, NW, Washington, DC 20581 (202) 254- 8955 (202) 254- 8010 Facsimile December 27, 1993 Re: No-Action Relief under Rule 4.7 Dear This is in response to your letter dated December 16, 1993, as supplemented by telephone conversations with Division staff, in which you request relief under Rule 4.7(a)11 on behalf of "S", a registered commodity pool operator ("CPO"), in connection with its operation of certain commodity pools (the "Funds") such that it may treat "A" as a qualified eligible participant ("QEP") in the Funds . '1=.1 Based upon the representations made in your letter, as supplemented, we understand the facts concerning "A" to be as follows:
"A" is sophisticated and informed about financial matters in general and . . the Fund[s] in particular. "A" is an accredited investor as defined in Regulation D under the Securities and Exchange Act and owns an in￾vestment portfolio in excess of $1,000,000. He has been associated with "S" as a limited partner in [one of] the Fund[s] since its inception in 1991. In addition, since 1988 he has been one of two independent directors 11 Commission rules referred to herein are found at 17 C. F. R. Ch . I ( 19 9 3 ) . '1=.1 Specifically, the Funds, for each of which "S" has filed a Rule 4. 7 claim of exemption, are as follows: "T", "U", "V", "W", "X", "Y" and "Z". Certain of the Funds were existing limited partnerships at the time "S" filed the Rule 4.7 claim. In this regard, you have represented that for each filing made with respect to an existing limited partnership, "S" complied with the procedure set forth in Rule 4.7(a) (3) (i) (I)(~) for previously offered pools.