Rules 4.13(a)(4) and 4.7(a)(2)(viii)(A)(5);
The Division of Clearing and Intermediary Oversight denied a request by a CPO to treat the mother-in-law of one of the CPO's principals as a QEP for the purpose of continuing to operate a pool pursuant to the CPO registration exemption to Rule 4.13(a)(4). The purpose of the CPO registration exemption of Rule 4.13(a)(4), a natural person QEP, as defined by Rule 4.7(a)(2)(viii)(A)(5), includes the spouse, child, sibling, or parent of a principal of a CPO, but does not include the principal's parent-in-law. Relief is denied in part because the CPO was unable, as a predicate of relief under Rule 4.13(a)(4), to treat the mother-in-law similarly to certain non-QEP family members of the sole shareholder of a CPO's general partner, that the Division had previously allowed to be treated as QEPs for the purpose of granting relief under Rule. 4.7. Such treatment would have included, with respect to the mother-in-law's investment, waiving any fees, waiving any applicable minimum investment requirement, waiving or relaxing any restrictions on the right to redeem, and providing the reports required by Rule 4.22.