July 23, 2021

Volume XI, Number 204

Advertisement

July 23, 2021

Subscribe to Latest Legal News and Analysis

July 22, 2021

Subscribe to Latest Legal News and Analysis

July 21, 2021

Subscribe to Latest Legal News and Analysis

July 20, 2021

Subscribe to Latest Legal News and Analysis

SEC Issues Notice of Substituted Compliance Application and Proposed Substituted Compliance Order for United Kingdom and Reopens Comment Period for Notice and Proposed Substituted Compliance Order for France

On April 5, the Securities and Exchange Commission voted to take two actions in the implementation of security-based swap regulation under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

Substituted compliance is a mechanism that allows the SEC to determine that certain participants in US security-based swap markets may satisfy certain requirements under the Securities Exchange Act of 1934 (Exchange Act) by complying with comparable non-US requirements. Under the SEC’s substituted compliance regime, the SEC may determine that registered non-US security-based swap dealers and registered non-US major security-based swap participants may satisfy certain requirements under Exchange Act section 15F and the rules and regulations thereunder by complying with comparable non-US requirements.

The SEC published a notice of application and proposed substituted compliance order in response to an application from the K Financial Conduct Authority (FCA). The FCA application seeks substituted compliance for UK-regulated firms based on compliance with UK requirements. The proposed substituted compliance order for the United Kingdom provides that certain UK-regulated firms that are also registered with the SEC as security-based swap dealers and major security-based swap participants conditionally may satisfy certain requirements under the exchange by complying with comparable UK requirements.

In addition, the SEC re-opened the comment period on the notice of application and proposed substituted compliance order in relation to the application by France’s Autorité des Marchés Financiers (AMF) and Autorité de Contrôle Prudentiel et de Résolution (ACPR).

The public comment period is open for 25 days following publication in the Federal Register.

The SEC’s original notice and proposed order for the United Kingdom.

The SEC’s original notice and proposed order for France.

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume XI, Number 99
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Susan Light, Katten Law Firm, Finance Law Attorney, New York
Partner

Susan Light focuses her practice on financial services regulatory matters. She counsels broker-dealers, hedge funds, investment banks and financial services clients on enforcement issues involving the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), other self-regulatory organizations (SROs) and state and federal regulatory authorities. She has particular experience related to sales practice issues, financial and operational issues, anti-money laundering, crowdfunding, cybersecurity, and cryptocurrencies.

...
212-940-8599
Advertisement
Advertisement