Overview
- Through Staff Letter 25-50 issued on December 19, the Market Participants Division said it will not recommend enforcement if eligible advisers to qualifying private funds forgo CPO or CTA registration.
- Relief applies only where the adviser is SEC-registered, fund interests are privately offered, all investors are reasonably believed to be qualified eligible persons, and the adviser files Form PF for the pool.
- Firms must email a notice of reliance to mpdnoaction@cftc.gov, provide disclosure to pool investors about using the relief, and make an annual affirmation of eligibility.
- The pathway excludes exempt reporting advisers and SEC-registered advisers that do not file Form PF, limiting availability largely to managers of privately offered 3(c)(7) funds and similar vehicles.
- Registered CPOs and CTAs may withdraw in reliance on the letter without offering investors a mandatory redemption under Rule 4.13(e)(2), potentially reducing compliance costs, with the relief remaining in effect until the CFTC acts on formal rules or declines to proceed.