Family Offices Granted Relief From Registration As Commodity Trading Advisors.

On November 5, 2014, the U.S. Commodity Futures Trading Commission ("CFTC") issued a no-action letter ("CFTC Letter 14-143") regarding registration requirements for family offices. This letter was similar to CFTC Letter 12-37 which stated that family offices did not have to register as commodity pool operators ("CPOs") if they sent a notice to the CFTC identifying themselves as family offices. CFTC Letter 14-143 extended this position to commodity trading advisors ("CTAs"). Thus, family offices that satisfy the U.S. Securities and Exchange Commission's definition of a "family office" must also notify the CFTC to avoid CPO and CTA registration.  Specifically, the notice must: •State the name, main business address, and main business telephone number of the Family Office claiming the relief;

•State the capacity (i.e., CTA) and, where applicable, the name of the pool(s), for which the claim is being filed;

•Be electronically signed by the Family Office; and

•Be filed with the Division using the email address dsionoaction@cftc.gov with the subject line "Family Office CTA Relief."

If you would like to read CFTC Letter No. 14-143, click on the link below:

 

http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-143.pdf

Cheryl Spratt