The Commodity Futures Trading Commission’s (CFTC) Market Participants Division has issued a no-action letter in response to a request from the Managed Funds Association. The letter clarifies that the division will not recommend enforcement action against investment advisers registered with the Securities and Exchange Commission (SEC) who operate commodity pools that are privately offered exclusively to sophisticated investors, also known as qualified eligible persons, if they have not registered with the CFTC as commodity pool operators. This position is subject to certain conditions.
According to the CFTC, “MPD will not recommend the CFTC initiate an enforcement action against firms registered as investment advisers with the Securities and Exchange Commission, who operate commodity pools privately offered solely to sophisticated investors known as qualified eligible persons, for failing to register with the Commission as a commodity pool operator, subject to certain conditions.”
The no-action relief is directed at SEC-registered investment advisers serving a specific class of private funds targeted at experienced investors.
