Individuals previously registered as principals of a CTA, who wish to become APs of that CTA, may be exempted from the registration requirements of Rule 3.12. Having previously filed Forms 8-R and fingerprint cards with NFA, the principals need only file Forms 3-R, updating their Forms 8-R, to register as APs, provided the CTA files a sponsor's certification for each of them
Rules 4.21, 4.22 and 4.23(a)(10) and (a)(11);
A registered commodity pool operator is exempt from the requirements of Rules 4.21, 4.2 2 and 4.23(a)(10) and (a)(11), where all of the pool's participants are related to the CPO, subject to the conditions that: (a) the CPO file an Annual Report for 1995 because during that year the pool had participants who were unrelated to the CPO and (b) no unrelated persons participate in the pool.
The Division permitted a registered CPO to continue using a pool's Disclosure Document for nine months from the date of the Document, instead of the six months provided in former Rule 4.21(e)(2), where (1) the pool was publicly offered pursuant to a registration statement filed with the Securities and Exchange Commission; (2) the pool's Disclosure Document was prepared in accordance with the Commission's former Part 4 rules; and (3) the Disclosure Document was filed with the Commission prior to the August 24, 1995, effective date of the Commission's revisions to the Part 4 CPO/CTA disclosure regulations. The adopting release for the Part 4 revisions provided that the Disclosure Documents prepared under the former Part 4 rules and filed prior to August 24, 1995, could be used for the six-month period of the former rules.
Explanation of the exemption from CPO registration in Rule 4.13(a)(2), for pools with total gross capital contributions under $200,000 and no more than 15 participants
CEAct 4m(l), Rule 4.23(a);
The foreign administrative general partner of a pool is granted relief from CPO registration where a second general partner, who is a registered CPO, runs the investment and trading program of the pool and co-signs an affidavit with the administrative general partner wherein each accepts joint and several liability for any CEAct violations by the other. Relief from registration is also conditioned on the fact that the one limited partner, although a U.S. person (because it is wholly owned by a US person), is a major institutional investor who is a QEP under Rule 4.7
A corporate CPO, which will operate itself as a CPO, is exempted from the Rule 4.20(a) requirement that a CPO "must operate its pool ... as a legal entity separate from that of the pool operator," where: (1) each participant in the pool will be issued stock or other evidence of ownership; (2) the CPO does not operate any pools other than itself; (3) all funds the CPO receives from participants are received in the CPO's name; and (4) the CPO's bank accounts and custody account are not authorized to received funds or assets other than in the name of the CPO
A registered CTA does not have to maintain hard copies of client confirmation and purchase-and-sale statements when such statements are received from FCMs electronically and the CTA maintains the electronically-received statements on disk in accordance with Commission Rule 1.31(d)
Rules 1.14 and 1.15;
(Denied) - A request for an exemption from the Commission's risk assessment rules was denied where no grounds for an exemption were found to be presented
The Division of Trading and Markets granted a registered CPO a 45-day extension in which to comply with the annual report requirements of Rule 4.7(a)(2)(iii) where, among other things, Rule 4.7 pools traded through investments in other funds and participants could redeem their interests in the Rule 4.7 pools at least quarterly with 60 days notice.
The Division of Trading and Markets exempted a registered CTA from the disclosure document requirements of Rule 4.31 where the CTA's sole client was an offshore commodity pool (the "Fund") which would have no participation by U.S. persons. In addition, the division took a CPO registration no-action position with respect to a British Virgin Islands company controlled by a U.S. company registered with the CFTC as a CPO, where the company served as co-CPO to the fund. The no-action position stipulated, among other conditions, that the U.S. registered CPO file Form 3-R naming the fund as a commodity pool to be operated by it; and the U.S. CPO and the company each provide written acknowledgement accepting joint and several liability for any violations of the Act or CFTC rules relating to their activity in connection with the fund.
Rules 3.12(a) and 4.31;
Certain persons associated with a registered US CTA are exempt from registration as APs where such person are listed as principals of the CTA, are Canadian citizens, and will not solicit or direct any marketing efforts to, or accept any capital from, US persons. The registered US CTA also is exempt from the disclosure document requirements of Rule 4.31
A CTA that is advising a fund need not provide the fund's CPO with a disclosure document under Rule 4.31 where, among other things, the president of the CPO is an AP of the CTA and has access to all relevant information that would otherwise be provided to the CPO in the CTA's disclosure document
Rule 3 .12 (h) (1) (iii);
(Denied) - Exemption from AP registration is denied for officers of a CPO/CTA which is unable to verify that ten percent or less of its total revenue comes from commodity interest related activities as required by CFTC rules
A CPO operating offshore pools that are "exempt" under Rule 4.7 may keep the books and records of the pools at their respective main business offices, rather than at the CPO's main business office in the U.S., where duplicates of such books and records will be kept by the CPO at its main business office and such books and records will be made available within 72 hours upon request by a Commission representative at the CPO's main business office.
No enforcement action recommended if the general partner of a private investment limited partnership fails to register as a CPO of a fund, where the fund was formed to primarily trade in securities, where the sole limited partner is: (1) a QEP; (2) an attorney who specializes in the practice of securities and commodities law; (3) a certified public accountant; (4) a member of the board of directors of a NYSE listed company; and (5) sought out the general partner to form the limited partnership
Relief from CTA disclosure document requirement granted to a registered CTA where: (1) the trading strategy being offered is otherwise only available to QECs for whom there is no disclousre document requirements; (2) the fund is an offshore entity comprised of only non-U.S. persons for whom no disclosure document is required; and (3) the CTA has no other clients for whom it is required to prepare a disclosure document
Section 4m(1), 7 U.S.C. 6m(1); Section 4k(2), 7 U.S.C. 6k(2); Rule 4.21 (as amended by 60 FR 38146 - 17 C.F.R 4.21, 4.24 & 4.26), 4.22, 4.23 (as amended by 60 FR 38146 - 17 C.F.R. 4.23);
Three corporate affiliates (CI, C2 and C3) of a holding company and one natural person^ (PI) who acts in various capacities in connection with such affiliates (e.g., as director, officer, employee or agent) were granted no-action releif from registration as commodity pool operatos (CPOs). CI, C2, C3, a fourth corporate affiliate (C4) and PI organized and operate, or assisted in the organization and assist in the operation of, 21 commodity pools. The releif was granted based on various factors, including two common factors: (1) none of the pools had United States investors; and (2) none of the pools' participants were solicited in the United States. The request for relief from CPO registration with respect to CI, C2, C3 and PI was initiated as a result of Pi's determination both to reside and conduct his various buinsess activities in the United States at least eight months of each year. PI also requested, but was not granted, no-action relef from registration as an associated person (AP). Instead, PI was required to register as an AP of C4, a registred CPO located in the United States. PI is an officer of C4 and C4 is the United States business located from which PI conducts his United States-based business activities. For two of the pools: (1) C4 is required to be listed as the registered CPO;(2) C4 was granted certain exemptive relief from the disclosre, reporting and recordkeeping requirements of the Part 4 Rules; and (3) C4 was granted exemptive relief from the provision of Rule 4.34 requiring that original books and records be maintained at the offices of C4. With respect to the operation of the same two pools, C4 and one of the previously identified corporate affiliates (CI through C3) agreed to accept joint and several liability for any violation of the Act or the regulations committed by C4 or such affiliate
The Division granted registered CPO a ninety day extension in which to comply with the annual report requirements of Rule 4.7(a)(2)(iii) where, among other things: (1) the Rule 4.7 pool was a "fund of funds" and each of the three sub-funds that the pool invested in had received an extension of time from the Division in which to file annual reports; (2) investors would receive quarterly reports in a timely manner; and (3) investors would receive certified annual reports at least 75 days prior to the date on which a redemption notice is due
Rule 4.21, 4.22, 4.23(a)(10) and (11); and Rule 4.7(a);
Subject to certain conditions, the Division of Trading and Markets exempted a CPO from the reporting and recordkeeping requirements of Rules 4.21, 4.22 and 4.23(a)(10) and (11) in connection with its operation of a Fund in which all investors would be professional level employees of the CPO. The Fund would invest all its assets in a Rule 4.7-exempt pool (investee pool) operated by the CPO, the Fund investors would be involved in the operation of this investee pool. Among other things, the CPO agreed to provide employees who invest in the Fund with the periodic and annual reports of the investee pool and with an annual statement from the auditors of the investee pool stating the value of the Fund's investment therein; to allow investors access to books and records of the Fund and the investee pool; and to assure that the value of an individual employee's investment in the Fund did not exceed certain limits stated in terms of the employees yearly earnings from the CPO and overall net-worth. Finally, the Division granted no-action relief so that the investee pool could continue to invest more than ten percent of its assets in other Rule 4.7-exempt pools, although the Fund would not qualify as a QEP.
Relief granted to a CPO from the requirement that a CPO must maintain books and records as specified in the rule at its main business office in connection with the CPOs operation of an offshore pool open only to QEPs.