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Exemptive Letters

Date
Exemptive Letters
05/25/2004
04-17 PDF Image; Rules 4.13(a)(4) and 4.7(a)(2)(viii)(A)(5); Exemption
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.
08/17/2004
04-22 PDF Image; Rule 4.23; Exemption
The Division of Clearing and Intermediary Oversight exempted a CPO from the requirement of Rule 4.23 that the CPO maintain certain books and records at its main business address.The exemption is subject to the conditions that: (1) the CPO will notify the Division if the location of any original books and records changes; (2) the CPO remains responsible for ensuring that all books and records required by Rule 4.23 are maintained in accordance with Rule 1.31 and for assuring their availability to the Commission, NFA, or any other agency authorized to review such books and records in accordance with the Commission's regulations; (3) within 48 hours after a request by a representative of the foregoing, the CPO will obtain the original books and records and provide them for inspection at its main business address if the representative chooses to inspect them there; (4) the CPO discloses in its Disclosure Document where all books and records required by Rule 4.23 are kept; and (5) the CPO remains fully responsible for compliance with Rule 4.23, other than with respect to the rule's location requirement.
10/15/2004
04-28 PDF Image; Rule 3.12(g); Exemption
The Division of Clearing and Intermediary Oversight denied a request by a registered CTA for relief from the requirement that persons who solicit accounts on behalf of the CTA be registered as APs of the CTA. Because the CTA places orders on behalf of certain of its clients pursuant to a power of attorney, which grants the CTA full authority to effect commodity interest transactions on its clients' behalf, the CTA is engaged in the solicitation of discretionary accounts as contemplated by Section 4k(3) of the Act and rule 1.3(aa)(4). Consequently, notwithstanding the fact that the CTA may confirm each trade before placing any orders on its clients' behalf, persons who solicit accounts on behalf of the CTA must be registered as APs of the CTA.
10/22/2004
04-30 PDF Image; Rule 4.23; Exemption
The Division of Clearing and Intermediary Oversight exempted a CPO from the requirement of rule 4.23 that the CPO maintain certain books and records at its main business address. The exemption is subject to the conditions that: (1) the CPO will notify the Division if the location of any original books and records changes; (2) the CPO remains responsible for ensuring that all books and records required by rule 4.23 are maintained in accordance with rule 1.31 and for assuring their availability to the Commission, NFA, or any other agency authorized to review such books and records in accordance with the Commission's regulations; (3) within 48 hours after a request by a representative of the foregoing, the CPO will obtain the original books and records and provide them for inspection at its main business address if the representative chooses to inspect them there; (4) the CPO discloses in its Disclosure Document where all books and records required by rule 4.23 are kept; and (5) the CPO remains fully responsible for compliance with rule 4.23, other than with respect to the rule's location requirement.

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