The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") granted no-action relief, subject to specified conditions, from commodity pool operator ("CPO") and commodity trading adviser ("CTA") registration requirements to a university management company and another entity operating several funds for the purpose of managing assets belonging to a university, its campuses, affiliated schools, and other supporting organizations.
Citing the alignment of interests of all participants, the lack of outside participants, and the fact that the funds were overseen by university officials, the DSIO granted relief from CPO/CTA registration requirements even though the funds' investment in commodity interests could trigger commodity pool regulatory requirements. In so doing, the DSIO cited CFTC Staff Letter 85-22, which granted similar no-action relief to a nonprofit membership corporation that provided investment management services to its members, which consisted similarly of a variety of universities and colleges seeking assistance in managing their endowments.
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