In an October 15th letter, the CFTC’s Division of Swap Dealer and Intermediary Oversight (“DSIO”) issued self-executing no-action relief that allows a person to not register as a commodity pool operator (“CPO”), if that person (the “Delegating CPO”) delegates certain of their responsibilities as a CPO of a commodity pool to another person who is registered as a CPO (the “Designated CPO”) under applicable requirements of the Commodity Exchange Act (“CEA”).  The letter, which replaces CFTC Staff Letter No 14-69, will be of primary interest to the investment management community, since the letter allows the CPO of a private fund (such as the corporate general partner of a “hedge fund” organized as a limited partnership) to avoid CPO registration, if the following conditions are met.
Continue Reading CFTC Letter No. 14-126: CPO Registration Not Required, If Responsibilities Delegated to Registered CPO – Relief Self-Executing