RegAlert1997-03-24 | CFTC Staff Letter 97-18Added · Updated
CFTC Staff Letter 97-18 (No-Action): Exemption from Rules 4.21, 4.22, 4.24, 4.25, and 4.26 for Additional Limited Partners
The Division of Trading and Markets exempts registered commodity pool operator and commodity trading advisor X from compliance with Rules 4.21, 4.22(a) and (b), 4.24, 4.25, and 4.26 regarding the Fund, permitting the acceptance of additional sophisticated investors as limited partners. This relief applies solely to specific disclosure and monthly reporting requirements and does not excuse X from other obligations under the Commodity Exchange Act or Commission regulations, including antifraud provisions and the oath requirement under Rule 4.22(h). The exemption is conditioned on X providing the Fund's governing documents and financial statements to new partners, obtaining their written non-objection to the exemptive relief, and ensuring their redemption or transfer if they cease employment with X or its affiliates.
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97-18
CFTC Letter No. 97-18
March 24, 1997
Division of Trading & Markets
Re: Request for Relief from Rules 4.21, 4.22(a) and (b), 4.24, 4.25 and 4.26 Dear :
This is in response to your letter dated February 14, 1996, to the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("Commission"), as supplemented by a facsimile dated March 3, 1997 and telephone conversations with Division staff. By your correspondence, you request relief from the requirements of Rules 4.21, 4.22(a) and (b), 4.24, 4.25 and 4.261 ("Rules") on behalf of X , a registered commodity pool operator ("CPO") and commodity trading advisor ("CTA"), with regard to the "Fund", a commodity pool operated by X which invests primarily in United States securities.2 Based upon your representations, we understand the relevant facts to be as follows. On November 4, 1996, the Division granted X an exemption from compliance with the Rules in connection with its operation of the Fund. X now seeks further relief from the Rules to permit it to accept additional persons ("New Limited Partners") as investors in the Fund. You represent that the New Limited Partners are sophisticated investors "fully capable of evaluating the risks of an investment in the Fund without the full disclosure and reporting safeguards of" the Commodity Exchange Act ("Act")3 and the Commission's regulations, and are involved in the trading or management of the Fund. Specifically, the New Limited Partners are:
(1) A , who is the Assistant Controller of X and its affiliate ( X Advisors"). 4 (2) B , who is a principal of X and an investment manager for a fund in which the Fund invests. (3) C , who is the Associate General Counsel of X and X Advisors . (4)-(8) D , E , F , G and H , who are investment managers for X Advisors . file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/97letters/tm97-18.htm (1 of 3) [5/6/2010 7:35:06 PM]
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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.