RegAlert1994-07-25 | CFTC Staff Letter 94-95Added · Updated
CFTC Staff Letter 94-95: No-Action Relief for CPO Registration and QEP Status
The Division of Trading and Markets will not recommend enforcement action against entity X or the Fund's general partners if they do not register as a commodity pool operator, provided X furnishes quarterly profit or loss statements and maintains books and records in accordance with Commission Rule 1.31(a)(1). Additionally, the Division will not recommend enforcement action if X treats certain non-QEP partners as Qualified Eligible Participants, subject to the condition that each such partner consents to this treatment. This relief allows the Fund to invest in limited partnerships requiring capital contributions only from Rule 4.7 entities.
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DIVISION OF
TRADING AND MARKETS
Dear
COMMODITY FUTURES TRADING COMMISSION 2033 K Street, NW, Washington, DC 20581 (202) 254-8955 (202) 254-8010 Facsimile July 25, 1994 Re: Relief for No-Action Relief Regarding QEP Status This is in response to your letter dated June 29, 1994, as supplemented by telephone conversations with Division staff, which we have treated as a request that the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("Commission") not recommend that the Commission take any enforcement action against "X" or any of "X's" co-general partners if none of the general partners of (the "Fund") registers as a commodity pool operator ("CPO"). Additionally, you request confirmation that ''X" may treat as Qualified Eligible Participants ("QEPs") certain Fund participants who do not come within the QEP definition set forth in Commission Rule 4.7.~/ Based upon the representations made in your letter, as supplemented, we understand the relevant facts to be as follows. "X" is a corporation organized for the purpose of serving as the managing partner of the Fund. The Fund is a general partnership organized for the purpose of investing in other investment partnerships. Except for "X", participation in the Fund is limited to partners of the law firm of "Y" who are "accredited investors" as defined in Rule 501 of Regulation D of the Securities Act of 1933, as amended. All of the principals and shareholders of "X" also are partners of "Y" who are accredited investors.
I. Request for Relief from CPO Registration
The management of the Fund is vested exclusively with "X", as the managing partner of the Fund, under the terms of the Fund's partnership agreement. You represent that "X's" authority includes, without limitation "the power to invest the assets of the Fund, enter into and perform contracts, make tax elections, ~/ Commission rules referred to in this letter are found at 17 C . F . R . Ch . I ( 19 9 3 ) . i) t
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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
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