Legal Question in Investment Law in Illinois

Exemption CFTC Registration

If my fund invests less than 5% of its total assets in commodities, does it still have to register with the CFTC? Does it make a difference whether our investors are accredited or not?


Asked on 1/02/09, 3:25 pm

1 Answer from Attorneys
Adam S. Tracy Securities Compliance Group Ltd

Re: Exemption CFTC Registration

There is an exemption for under 5%. You still may have SEC registration issues.

As for whether the investors are accredited or not, that is an issue as it relates to the offering of the fund interests. A Reg D offering provides for an exemption from registration when offered to accredited investors. There are exceptions, however. How much are you seeking to raise?

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Answered on 1/02/09, 4:36 pm


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