SEC Updates SBSD Registration Materials, Includes Substituted Compliance Questionnaire

The SEC updated its materials for security-based swap dealer registration, including a staff questionnaire for non-U.S. security-based swap dealers ("SBSDs") filing a substituted compliance application.

In order to permit substituted compliance (that is, to determine that a non-U.S. SBSD's compliance with its local home office law will be deemed to satisfy certain SEC requirements), the SEC must assess (i) the scope and intent of the foreign requirements, (ii) the extent of the foreign supervisory compliance program's effectiveness, and (iii) how the foreign enforcement exercises its authority. The questionnaire is intended to gather information relating to the foreign authority's (i) supervisory framework, (ii) enforcement framework, and (iii) supervisory and enforcement cooperation among the SEC and foreign authority. The SEC is particularly concerned with its ability to obtain relevant records generated by non-U.S. SBSDs. The questionnaire indicates