CFTC Issues Ten No-Action Letters Regarding Requirement to Register as a CPO (CFTC Letters 14-75 through 14-84) (with Mehta Comment)

The CFTC Division of Swap Dealer and Intermediary Oversight issued 10 letters granting no-action relief from the requirement under CEA Section 4m(1) to register as a CPO. The relief was issued to a number of delegating CPOs that requested it in accordance with the streamlined approach described in CFTC Letter 14-69. The relief is subject to the conditions that (i) the designated CPO serves as the CPO of the pool(s); (ii) the designated CPO remains registered as a CPO; and (iii) the delegating CPO(s) and designated CPO continue to meet the criteria represented in the letter.

Mehta Comment:It is helpful that the CFTC is providing relief for certain delegation requests that fall in line with the streamlined approach. Further guidance would be useful as to the entity/director types that have requested the relief. Certain types of "Delegating CPOs" – namely, inside and independent (including professional fiduciary services) directors – may choose to wait to seek relief until the CFTC provides additional guidance as to the best way to obtain it.

See: Form of Reply for CFTC Letters 14-75, 14-76, 14-77, 14-78, 14-79, 14-80, 14-81, 14-82, 14-83 and 14-84.
Related news:CFTC Streamlines Process for CPO Delegation (CFTC Letter 14-69)(with Mehta Comment) (May 12, 2014); CFTC Grants No-Action Relief Regarding CPO Registration under New Streamlined Approach (CFTC Letter 14-71) (May 19, 2014).