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I think there is also a limit on the amount of funds that can be managed
that goes along with the 15 or fewer clients....an either or situation. My
understanding is that limit is currently $250k, but like you said Aaron it
would be best to seek professional advice.
Bob
----- Original Message -----
From: "Schindler Trading" <schindlertrading@xxxxxxxxxxx>
To: "Jim Loftus" <pal9885@xxxxxxxxx>; <Omega-list@xxxxxxxxxx>
Sent: Sunday, September 01, 2002 11:45 AM
Subject: Re: Off topic - CTA
> See the NFA publication "A Guide to CFTC Registration and NFA Membership".
> It says you don't need to register as a CTA if you have 15 or fewer
clients.
> If the 401k can be considered as a single client or if there are 15 or
fewer
> employees in the 401k, I think you are exempt from registration.
>
> Another regulatory issue is that 401k plans are probably covered by the
> Employee Retirement Income Security Act (ERISA). ERISA requires
fiduciaries
> to invest in a prudent and diversified way. Speculating in futures may
not
> fit the judge's definition of "prudent" if you lose money and the 401k
> participants get litigious. For this reason the Schindler Fund commodity
> pool we manage does not take qualified retirement funds.
>
> I'd seek professional advice from a securities lawyer before taking on
401k
> funds. The Managed Funds Associaton (MFA; www.mfainfo.org) or your local
> bar association can help you find a securities lawyer.
>
>
> Regards,
> Aaron Schindler, CFA
>
> Schindler Trading
> 1243 Yorkshire Lane
> Barrington, IL 60010
> telephone: 847-719-2846
> fax: 847-719-2846
> email: aaron@xxxxxxxxxxxxxxxxxxxx
> www.schindlertrading.com
>
>
> ----- Original Message -----
> From: "Jim Loftus" <pal9885@xxxxxxxxx>
> To: <Omega-list@xxxxxxxxxx>
> Sent: Sunday, September 01, 2002 7:19 AM
> Subject: Off topic - CTA
>
>
> >
> > Can anyone tell me if it is OK for me, as an employee, to trade the
> > company's 401(k) money without becoming a CTA ? I'm not an officer,
> > director or shareholder of the company. The 401(k) plan has a provision
> (or
> > can be modified) to allow trading futures contracts.
> >
> > I've looked at a dozen websites with CFTC regulations and references and
I
> > can't find a simple sentence that says 'its OK for an employee to trade
> the
> > company's 401(k) plan'.
> >
> > If there's a simple answer, or a place to find it, I would appreciate
the
> > help.
> >
> > thanks,
> >
> >
> > Jim
> >
>
>
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