Three CFTC No-Acts Permitting the Delegation of the Obligation to Register as a CPO

The Division of Swap Dealer and Intermediary Oversight (DSIO) provided no-action relief to the general partner of a commodity pool from registering as a CPO under Section 4m(1) of the Commodity Exchange Act (CEA), and allowed an affiliated CPO ("designee"), which is in each case the investment manager of the relevant pool, to serve as the CPO of the pool instead where the following conditions were met: (1) the general partner and the designee are under common ownership and control; (2) the general partner has delegated all of its management authority to the designee; (3) the general partner does not engage in the solicitation of investors for the pool and does not manage property of the pool; and (4) the general partner and designee executed and submitted to the Division a written acknowledgement of joint and several liability for any violation by either of them of the CEA or the CFTC's regulations.

CFTC Letter 12-23 Section 4m(1) of the Act; Registration as a Commodity Pool Operator; No-Action CFTC Letter 12-24 Section 4m(1) of the Act; Registration as a Commodity Pool Operator; No-Action CFTC Letter 12-25 Section 4m(1) of the Act; Registration as a Commodity Pool Operator; No-Action