CFTC Staff Letter 99-46: No-Action Position on CPO and CTA Registration for Family Partnership

99-46
CFTC Letter No. 99-46
September 29, 1999
No-Action
Division of Trading & Markets
Re: Request for CPO Registration No-Action Position under Section 4m(1) of the Act. Request for CTA Registration No-Action Position under Section 4m(1) of the Act. Dear :
This is in response to your letter dated August 12, 1999 to the Division of Trading and Markets ( Division ) of the Commodity Futures Trading Commission ( Commission ), as supplemented by your electronic mail messages dated September 3, 1999 and September 15, 1999 and telephone conversations with Division staff. By your letter you request that:
(1) the Division not recommend that the Commission commence any enforcement action for failure to register as commodity pool operators ( CPOs ) under Section 4m(1) of the Commodity Exchange Act (the Act ) 1 against the General Partners (as that term is defined below) of (the Partnership );2 and (2) the Division not recommend that the Commission commence any enforcement action for failure to register as a commodity trading advisor ( CTA ) under Section 4m(1) of the Act against (the Adviser ). 3 Facts Based upon the representations made in your correspondence, we understand the facts to be as follows: The Partnership is a general partnership which invests in a variety of investment limited partnerships and investment limited liability companies. It was established on January 1, 1997. The total assets in the Partnership are in excess of $21.6 million. To date, the Partnership has invested its assets in investment vehicles that invest, either directly or through other investment vehicles, in securities. However, it now seeks to invest in vehicles which may trade commodity interests, such as the Pool. Each of the Partnership s fourteen general partners (the General Partners ) was established for the purpose of carrying out the estate plans, particularly for providing charitable contributions, of brothers A (deceased, survived by his spouse, B ), C , D and E and of F , who is the son of E (the Family Members ). A was and each of the remaining Family file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/99letters/tm99-46.htm (1 of 6) [5/6/2010 7:14:24 PM]