Commodity Futures Trading Commission provides new streamlined process for commodity pool operators to request no-action relief for delegating certain activities to registered CPOs
Abstract
Purpose
To provide an overview of a new, streamlined process from the Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission (CFTC) by which a commodity pool operator (CPO) may request expedited no-action relief for failure to register under Section 4m(1) of the Commodity Exchange Act if such CPO has designated another, registered CPO to serve as the CPO of the commodity pool.
Design/methodology/approach
Explains the background to the CPO registration no-action relief related to CPO delegation and the streamlined process for requesting no-action relief, including the procedure for requesting relief and the applicable criteria that must be satisfied to utilize the streamlined process.
Findings
By providing an alternative, streamlined process for requesting no-action relief from CPO registration in the context of delegation arrangements in certain circumstances, the CFTC staff is attempting to facilitate obtaining such relief, particularly since relief may be sought on behalf of multiple commodity pools by means of a single request. However, the criteria that must be fulfilled in order to utilize the streamlined process are not necessarily applicable to all CPOs and in all scenarios. Thus, certain CPOs may need to request no-action relief outside of the new, streamlined process or consider alternative fund structures.
Originality/value
Practical guidance from experienced asset management lawyers.
Keywords
Acknowledgements
© 2014 Fried, Frank, Harris, Shriver & Jacobson LLP
Fried Frank corporate associates William J. Breslin and Victoria T. Mazgalev assisted in the preparation of this article.
Disclosure. This memorandum was originally issued on May 14, 2014, and was up to date at the time of its original publication. It does not reflect developments since that time. This piece is not intended to provide legal advice, and no legal or business decision should be based on its contents. If you have any questions about the contents of this article, or wish to discuss any specific aspects, please contact one of the authors.
Citation
Khuri, W., M. McLauglin, R., S. Mitchell, D. and W. Selden, D. (2014), "Commodity Futures Trading Commission provides new streamlined process for commodity pool operators to request no-action relief for delegating certain activities to registered CPOs", Journal of Investment Compliance, Vol. 15 No. 3, pp. 41-46. https://doi.org/10.1108/JOIC-08-2014-0033
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Authors