January 6, 2015

CFTC Staff Issues No-Action Relief to a Swap Dealer from Certain Chief Compliance Officer Reporting Line Requirements under Commission Regulations

Washington, DC — The U.S. Commodity Futures Trading Commission’s (Commission) Division of Swap Dealer and Intermediary Oversight (DSIO) provided conditional no-action relief to a provisionally registered swap dealer, permitting the firm, subject to the conditions in the letter, to:

• maintain a limited reporting line for the chief compliance officer (CCO) to the “governing body” established pursuant to Commission regulation 23.600,
  
  
• undertake CCO consultations required under regulation 3.3 with the governing body instead of the board of directors or senior officer (with summary reports provided to the board or senior officer), and;
  
  
• have the CCO meet with the governing body at least annually and at the election of the CCO, rather than with the board of directors or senior officer, so long as the CCO is able to meet with the board or senior officer at the CCO’s election.
  

The relief was provided based on the facts and circumstances specific to the swap dealer receiving the relief. In addition to the other conditions for relief, the board of directors or senior officer are required to have continuing involvement with the CCO’s activities, including these requirements: the board or senior officer must remain responsible for appointing and removing the CCO and approving the CCO’s compensation; the CCO must deliver certain reports to the board or senior officer; and the board or senior officer must meet with the CCO at the election of the CCO in accordance with Commission regulation 3.3(a)(1).

Last Updated: January 6, 2015