SEC Moves Forward On UK-, French-Substituted Compliance Determinations

The SEC moved forward on proposed substituted compliance determinations for UK- and French-regulated firms that register as security-based swap dealers ("SBSDs").

The SEC proposed order for UK firms comes in response to an application submitted by the UK Financial Conduct Authority ("FCA") pursuant to SEA Rule 3a71-6 ("Substituted compliance for security-based swap dealers and major security-based swap participants"). The SEC reopened the comment period for the proposed substituted compliance determination for the application submitted by the Autorité des Marchés Financiers (or "AMF") and the Autorité de Contrôle Prudentiel et de Résolution (or "ACPR").

FCA requested substituted compliance for requirements under Exchange Act Section 15F ("Registration and Regulation of Security-Based Swap Dealers and Major Security-Based Swap Participants") regarding (i) risk control, (ii) recordkeeping and reporting, (iii) internal supervision and compliance, and (iv)