CFTC Staff Letters Archive

CFTC Staff Letters Archive provides Letters from 2007 and earlier. For Letters published 2008 or later visit the All Letters page.

There are no Advisory Letters or Other Written Communications for 2007 or earlier.

Date	PDF and Description
11/27/2002	02-115 ; Section 4m(1);; No-Action The Division of Clearing and Intermediary Oversight took a CPO registration no-action position with respect to a registered investment adviser in connection with providing investment management services to a Canadian non-contributory pension plan established by a Canadian corporation for the benefit of its employees and subject to the requirements of the Ontario Pension Benefits Act.
11/22/2002	02-114 ; Section 4m(1);; No-Action The Division of Clearing and Intermediary Oversight took a CTA registration no-action position with respect to a firm that sought to recommend investments for commodity interest accounts. The position was based, among other things, on the fact that in connection with the firm's registration as an introducing broker, each of its principals were listed as such and each of its associated persons were registered as such with the Commission, and the fact that the accounts and the investors in the accounts would all be QEPs.
11/22/2002	02-111 ; Rule 4.22(c) and (d);; No-Action The CPO of a pool that closed requested exemption from the requirements of Rule 4.22(d) that the pool's 2001 Annual Report be audited. An unaudited statement for the operating period was submitted. The exemption was granted due to the small size of the Pool and the small number of participants in the Pool.
11/22/2002	02-110 ; Rule 4.22(f);; No-Action A CPO has requested an extension of time to file its annual report for the fund it operates. The independent accountant for the Fund has informed the CPO that the audited financial statements will be delayed due to the accountant's inability to obtain from the offshore administrator information needed to complete the audit in a timely manner.
11/20/2002	02-112 ; Regulations 1.3(k) and 1.3(y);; No-Action The Division of Clearing and Intermediary Oversight provided an interpretation that an account for an FCM carried on the books of another registered FCM, in which the carrying FCM receives, in lieu of commissions, a portion of the profits of the other FCM, but is not the owner of the account or the account holder, would not fall within the definition of a proprietary account under Commission Rule 1.3(y). The account would, instead, be carried as a customer account, subject to the sections of the Act and Commission Rules applicable to such accounts.
11/19/2002	02-113 ; Rule 4.7;; No-Action The Division of Clearing and Intermediary Oversight took a no-action position further expanding the class of persons eligible to participate in certain investment funds operated by a registered FCM and broker-dealer as an incentive for the FCM/Broker-dealer's partners and senior management employees. The Division had previously permitted non-QEP managing directors and limited partners to participate, and the instant no-action position confirmed the prior relief while permitting additional classes of accredited investor employees and consultants of the FCM/Broker-dealer and their family members to participate. Each participant's investment could be no more than 15 percent of salary for the pervious year. Each investment fund would commit no more than 10 percent of its assets to commodity interest trading. All financial reports required by Rule 4.7 would be provided to participants and the relief was conditioned upon each eligible participant having reasonable access to the fund's books and records, with the opportunity to ask questions and receive answers concerning the fund's operation and investments.
11/14/2002	02-108 ; Regulations 4.7(b)(1), 4.7(b)(2), and 4.7(b)(3);; No-Action The Division of Clearing and Intermediary Oversight provided exemptive relief to a registered COP from the disclosure and periodic and annual reporting requirements of Rules 4.7(b)(1), 4.7(b)(2), and 4.7(b)(3) in connection with its operation of a master fund that has as its sole participants two feeder funds that are also operated by the COP. The relief is subject to the conditions that: (I) the COP remain the COP of the Master Fund and the Feeder Funds; (ii) participation in the Master Fund is limited to the Feeder Funds, and any fund for which the COP is the sole COP; and (iii) the annual reports of the Feeder Funds contain financial statements that include, among other information, the fees associated with the operation of the Master Fund expressed in dollars and a detailed schedule of investments made by the Master Fund.
10/30/2002	02-109 ; Regulations 4.21 and 4.22;; No-Action The Division of Clearing and Intermediary Oversight provided exemptive relief to COP X from the Disclosure Document delivery requirement and periodic and annual reporting requirements of Rules 4.21 and 4.22, respectively, in connection with its operation of a master fund that has as its sole participants two feeder funds. COP X serves as the COP of the master fund and one of the feeder funds and COP Y serves as the COP of the other feeder fund. Both Cops share the same owners and mangers. Relief is subject to the conditions that: (I) COP X remains the COP of the master and one of the feeder funds; (ii) Cops X and Y have the same management and ownership; (iii) Y remains the COP for the other feeder fund; (iv) participation in the master fund is limited to the feeder funds or any fund in which X or Y, or both, are the sole Cops; and (v) the annual reports of the feeder funds contain financial statements that include, among other information, the fees associated with the operation of the Master Fund expressed in dollars and a detailed schedule of investments made by the Master Fund.
10/30/2002	02-107 ; Rule 4.5;; No-Action The Division of Clearing and Intermediary Oversight advised a requestor that action on its request for relief from the non-hedge trading limitation of Rule 4.5 was no longer necessary in light of the Commission's recent "no-action" position. See 67 Fed. Reg. 65743 (October 28, 2002).
10/08/2002	02-105 ; Rule 4.22(c) & (d);; No-Action The CPO of a pool, which ceased trading on June 30, 2002, requested exemption from the requirement of Rules 4.22(c) and (d) that the pool's 2002 Annual Report be audited. The participants submitted consent waiver statements in support of the exemption. The CPO has submitted unaudited statements for January 1 through June 30, 2002. The exemption was granted.