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CFTC grants no-action relief from registration to family offices that are commodity pool operators

Tuesday, December 11, 2012
Opalesque Industry Update: The CFTC recently granted no-action relief to family offices that are commodity pool operators ("CPOs") from CPO registration with the CFTC. This relief is not self-executing; a family office that is a CPO must provide notice to the CFTC in order to claim the relief.

Required Conditions for No-Action Relief Eligibility

To qualify for the relief, a CPO that is a family office must:

  • submit a claim to take advantage of the relief; and
  • remain in compliance with the meaning and intent of a "family office" as defined in Rule 202(a)(11)(G)-1 of the Investment Advisers Act of 1940 (the "Advisers Act").[1]
Action Required to Claim the Relief

As the no-action relief is not self-executing, an eligible family office CPO must file a claim with the CFTC via email requesting the relief. Provided that the claim is complete, the relief will be effective upon filing. The claim for the no-action relief must:

  • state the name, main business address, and main business telephone number of the CPO claiming the relief;
  • state the capacity (i.e., CPO) and, where applicable, the name of the pool(s) for which the claim is being filed;
  • state that the CPO is a family office within the meaning and intent of Rule 202(a)(11)(G)-1 of the Advisers Act and that the CPO will notify the CFTC if it ceases to meet the family office definition;
  • be electronically signed by the CPO; and
  • be filed with the CFTC's Division of Swap Dealer and Intermediary Oversight (the "DSIO") by email at using the subject line "Family Office."

Deadlines for Claiming the Relief

For a family office in operation as of December 1, 2012, the claim must be emailed to the DSIO prior to December 31, 2012.

For a family office that begins to operate after December 1, 2012, the claim must be emailed to the DSIO within 30 days after it begins to operate as a family office.

Sadis & Goldberg LLP

Press Release


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