CFTC Staff Letter 96-36: No-Action Relief for Treating Certain Employees as Qualified Eligible Participants

.. n.s.
DIVISION OF
1RADING & MARKETS
. JTV FUTORF-~ TRAnt ~ ~ M
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418·5430 Facsimile: (202) 418-5536 !Of'J May 2, 1996 Re: Rule 4. 7 Request to treat as qualified eligible participants ("OEPs") certain non-OEP participants. Dear This is in response to your letter dated March 11, 1996 to the Division of Trading and Markets (the "Division") of the Conunodity Futures Trading Conunission (the "Conunission"), as supplemented by your letter dated March 13, 1996 and by telephone conversations with Divi;;ion staff. By your correspondence, you request on behalf of "0"1. relief from the requirements of Conunission Rule
4. 7,£1 permitting "0" to continue to claim exemption under Rule
4.7 from certain disclosure, reporting and recordkeeping require -
ments otherwise applicable to The Directors Fund Limited Partner￾ship (the "Pool"), notwithstanding that, effective January 31, 1996, certain non-QEPs have purchf$ed Class B units of the Pool. By letter dated August 12, 1993,-/ the Division granted exemp - 1./ "0" was previously known as "P", and was a Netherlands Antilles corporation. "0" was recently renamed and was reincor￾porated in Bermuda. £1 Conunission rules referred to herein are found at 17 C.F.R. Ch. I Part 4 (1995), as amended Qy 60 Fed. Reg. 38146 (July 25, 1995). 2/ CFTC Interpretative Letter 93-92 [1992 - 1994 Transfer Binder] Comm. Fut. L. Rep. (CCH) , 25,858 (August 1 2, 199 3). We also note that by letter dat ed January 17, 1995 the Division granted r eli ef pe rmi tti ng an i nve ste e pool of the Pool t o trea t t h e Pool as a QEP and permitting CTAs retained by the Pool to treat the Pool a s a quali f i ed eli g i ble clie nt ("QEC") wi thi n the me aning o f Rule 4.7, notwithstanding the presence of non-QEP participants in (conti nued .. . )