CFTC Grants Registration Relief To Delegating CPO

The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") granted no-action relief to a commodity pool operator ("CPO") from registration requirements under CEA Section 4m(1) in relation to its role as the trustee of certain commodity pools. In lieu of this requirement, the CPO will delegate responsibilities to an investment advisor for the relevant pools.

The CPO failed to meet the common control requirement instituted by CFTC No-Action Letter 14-126 (i.e., that the Delegating CPO and the Designated CPO be under common control with each other where they are legal entities). However, the DSIO agreed to grant exemptive relief based on, among other factors, an agreement that the two CPOs are "jointly and severally liable" for violations of the CEA or CFTC Rules.