Qualified Eligible Person

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A "Qualified Eligible Person" is, as defined by the Commodity Futures Trading Commission, is an individual who has fulfilled the eligibility requirements for dealing in certain alternative investments such as futures, hedge funds, or commodity pools.[1] In general, to be considered a QEP, the person must either meet a "portfolio requirement" (i.e., meet or exceed a threshold value of portfolio holdings) or be employed in a certain professional capacity within the alternative investment sector.

Portfolio Requirement

To be considered a QEP, the following persons must fulfill the portfolio requirement:

  • Registered investment companies, banks, and insurance companies;
  • Certain state, benefits, corporations, trusts and partnerships with over $5 million in assets;
  • Private business development companies; and
  • 501(c)(3) organizations with more than $5 million in assets.


In order to meet the portfolio requirement for becoming a QEP, an individual must:


Financial Professionals NOT Subject to Portfolio Requirement

Below is a list of investors who are considered QEPs regardless of whether a portfolio requirement has been met:

References

  1. Electronic Code of Federal Regulations. U.S. Government Printing Office.
  2. Qualified Eligible Person (QEP) Definition. Hedge Fund Law Blog.