141 Capital Inc (fka ONCP)

[alliecorp]

The exemption refers to 141 not needing to be a registered CPO or Commodity Pool Operator(below).This exemption will enable them to trade for small investor pools.

Perhaps the difference we are overlooking here is that these are to be private investment club pools, set up as LLC's, that are created outside of 141 Capital. Or more specifically, privately operated LLC's with funds traded by 141.

In fact, what 141 is offering is the potential that any of us can form an LLC investment club to have private funds traded by 141. This is different than 141 being a CPO.


http://www.nfa.futures.org/registration/cpo.asp

Commodity Pool Operator (CPO)
A CPO is an individual or organization which operates or solicits funds for a commodity pool; that is, an enterprise in which funds contributed by a number of persons are combined for the purpose of trading futures contracts or commodity options, or to invest in another commodity pool.

In general, registration is required unless the CPO qualifies for one of the exemptions from registration outlined in CFTC Regulations 4.5 or 4.13. Examples of entities or individuals that may be exempt include the following:


Those otherwise regulated, such as a bank, insurance company, or a registered Investment Company,

Those who operate one or more small pool(s) that has received less than $400,000 in aggregate capital contributions and that have no more than 15 participants in any one pool,

Those whose pools are only open to persons meeting certain sophistication standards and that trade futures within specified limits, or

Those whose pools are only open to persons who demonstrate a certain level of sophistication or net worth.
For more details on the exemptions available, please refer to the summary found at http://www.nfa.futures.org/registration/easyReferenceGuidePart4.pdf.

You may access Part 4 of the CFTC Regulations, including Rules 4.5 and 4.13 and other rules particularly relevant to CPOs, at http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=ae593c26756e575d82fd81008cf51494&tpl=/ecfrbrowse/Title17/17cfr4_main_02.tpl.

You may access specific guidance regarding the application of Rules 4.5 and 4.13 at http://www.cftc.gov/files/foia/fedreg03/foi030808a.pdf or at http://www.cftc.gov/files/foia/fedreg04/foi040709a.pdf

If a CPO is qualified for an exemption from registration, the pool operator must electronically file a notice of exemption from CPO registration through NFA's Electronic Exemption Filing System. You may access the system at http://www.nfa.futures.org/compliance/ExemptLoginSelection.asp.

To register, a CPO is required to file the following:

A completed online Form 7-R.

A completed online Form 8-R, fingerprint card and fee of $85 for each individual principal. Fingerprint card and fee are not required if such person is currently registered with the CFTC in any capacity or is listed as a principal of a current CFTC registrant.

Individual principals and branch office managers who are applying for registration as an associated person must satisfy all applicable filing requirements. Also, for each branch manager proof of passage of the futures branch office manager examination (Series 30) or sponsorship by a broker-dealer and proof of having met the branch office manager requirements of the Financial Industry Regulatory Authority.

A non-refundable registration fee of $200.