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Family Offices Granted No-Action Relief from Commodity Trading Advisor Registration


2/3/15

The Commodity Futures Trading Commission (CFTC) Division of Swap Dealer and Intermediary Oversight recently issued a no-action letter which provides Commodity Trading Advisor (CTA) registration relief to family offices. A family office, as defined under the Investment Advisers Act of 1940, is generally a company that does not hold itself out to the public as an investment adviser, is wholly owned by “Family Clients”, as defined by regulations promulgated by the Securities and Exchange Commission, and whose only clients are Family Clients. The new letter from the CFTC provides relief from CTA registration for any CTA that qualifies as a family office and provides  advisory services to Family Clients – prior to the no-action letter, only the commodity pool operator (CPO) was provided relief from registration for CPOs operating family offices, this did not include the CTAs. This registration is not self-executing; CTAs serving Family Clients must submit an electronic filing with the CFTC including the CTA’s name, contact information, capacity and names of the pools for which the claim is filed.

Contact

For more information, please contact Jay Levy, a CohnReznick partner and the Firm’s Financial Services Industry Practice Leader, at jay.levy@cohnreznick.com or 212-297-0400.

To learn more about CohnReznick’s Financial Services Industry Practice, please visit our webpage.


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