CFTC Grants No-Action Relief to CPO from Requirement to Audit Financial Statements in Annual Report (CFTC Letter 14-19) (with Lofchie Comment)

The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") issued no-action relief to a CPO, with respect to a single-member pool (where the single member controlled the pool), from the requirements under CFTC Rules 4.7(b)(3) ("Relief Available to Commodity Pool Operators") and 4.22(d)(1) ("Reporting to Pool Participants") to audit its financial statements in the annual report for the fiscal year ending on December 31, 2013. The relief granted is conditioned on the CPO's filing with the National Futures Association ("NFA") an unaudited 2013 Annual Report for the pool that otherwise complies with the CFTC Rules.

Lofchie Comment: The existence of a "pool" requires some "pooling" of investments by different persons. An entity that is owned by a single person would not even seem to be a pool.

See: CFTC Letter 14-19.