CFTC Staff Letter 96-60: No-Action Relief from CPO and CTA Registration for Investment Adviser and Trustee of Canadian Pension Plan Trust

U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5430 Facsimile: (202) 418-5536 9~-60 DIVISION OF TRADING & MARKETS Dear July 22, 1996 Re: Section 4m(1) -- Request for Relief from CTA and CPO Registration Requirements By Investment Adviser to and T:rustee of Trust Fund Consisting of Canadian Pension Plans. This is in response to your letter dated February 7, 1996 to the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("Commission"), as supplemented by your letter dated April 11, 1996 and telephone conversations with Division staff. By your letter, as supplemented, you request on behalf of "U" and "V" relief from the requirements to register as a commodity trading advisor ( "CTA") and commodity pool operator ("CPO") in connection with their roles in advising and operating the "Group Trust", a trust fund that will have as its participants Canadian pension plans. Specifically, you request that the

• Division confirm that it will not recommend that the Commission
  take enforcement action for failure t? comply with Section 4m(1) of the Commodity Ex~hange Act ("Act").l against: 1) "U" or any of its affiliates~/ if "U" or an affiliate manages the Group Trust's assets using commodity interests, as described more fully below, without registering as a CTA or CPO; and 2) "V" or any of 1./ 7 U . S . C . § 6m ( 1 ) ( 19 9 4 ) . ~/ You represent that for the purpose of this letter an affiliate of "U" would be any entity controlling, controlled by or unde r common control with "U". You explain that "U" is requesting relief for its affiliates because "V" may wish to sign new contracts with affiliates of "U" under which such affiliates would perform duties on behalf of the Group T:rust that are currently the responsibility of "U" under the Investment Management Agreement dated September 15, 1995 between "U" and "V" ( "IMA") .