CFTC Staff Letter 97-69: Exemption from Quarterly and Annual Reporting for Commodity Pool

97-69
CFTC Letter No. 97-69
August 21, 1997
Division of Trading & Markets
Re: Request for Relief from Reporting Requirements of Rules 4.7(a)(2)(ii) and (iii). Dear :
This is in response to your letter dated April 25, 1997, to the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("Commission"), as supplemented by your letter dated July 28, 1997 and telephone conversations with Division staff. By your correspondence, you request on behalf of X , a registered commodity pool operator ("CPO"), relief from the reporting requirements of Rules 4.7(a)(2)(ii) and (iii)1 in connection with its operation of the "Fund", a commodity pool for which X serves as the sole general partner and CPO. Based upon the representations made in your correspondence, as supplemented, we understand the relevant facts to be as follows. The Fund was organized as a limited partnership under the laws of Delaware in 1993. It is operated pursuant to an exemption under Rule 4.7(a).2 The Fund currently has assets of approximately $500,000. All limited partners had withdrawn from the Fund as of January 1, 1997, with the exception of the Individual Retirement Account of A ( Y ). A , an attorney licensed to practice in New York, 3 is listed as a principal of a sole proprietorship that is registered as a CPO and commodity trading advisor. Y s interest in the Fund is approximately 20 percent of the Fund's assets. 4 You request that X be granted relief from preparing and distributing the quarterly statements and Annual Reports required under Rule 4.7(a)(2)(ii) and (iii). In support of your request, you represent that X has determined to cease all solicitation efforts on behalf of the Fund, will not accept new investors and will continue to operate the Fund solely with its own assets and those of Y . You further represent that A will agree to a waiver of his rights under Rules 4.7(a)(2)(ii) and (iii) to receive quarterly statements and Annual Reports for the Fund. Based upon the foregoing representations, we believe that it would not be contrary to the public interest to grant the relief you have requested. Accordingly, pursuant to the authority delegated by Rule 140.93(a)(1), the Division hereby exempts X from compliance with Rule 4.7(a)(2)(ii) and (iii) in connection with its operation of the Fund. file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/97letters/tm97-69.htm (1 of 2) [5/6/2010 7:36:37 PM]