US Treasury Grants Exemptions for QFC Recordkeeping Related to OLA
The U.S. Department of Treasury, after consultation with FDIC, is issuing a determination regarding requests for exemption from certain requirements of the rule implementing the qualified financial contracts (QFCs) recordkeeping requirements of Title II of the Dodd-Frank Act. The exemptions granted are effective from December 21, 2018.
Under the recordkeeping regulation, insured depository institutions in a troubled condition are required to keep records related to the QFCs to which they are party. On October 31, 2016, the Treasury published a final rule pursuant to section 210(c)(8)(H) of the Dodd-Frank Act requiring certain financial companies to maintain records with respect to their QFC positions, counterparties, legal documentation, and collateral that would assist the FDIC as receiver in exercising its rights and fulfilling its obligations under Title II of the Act. Section 148.3(c)(3) of the rule provides that one or more records entities may request an exemption from one or more of the requirements of the rule by writing to the Department of the Treasury, the FDIC, and the applicable primary financial regulatory agency or agencies, if any. The written request for an exemption must:
- Identify the records entity or records entities or the types of records entities to which the exemption would apply
- Specify the requirements from which the records entities would be exempt
- Provide details as to the size, risk, complexity, leverage, frequency and dollar amount of QFCs, and interconnectedness to the financial system of each records entity, to the extent appropriate, and any other relevant factors
- Specify the reasons why granting the exemption will not impair or impede the FDIC's ability to exercise its rights or fulfill its statutory obligations under sections 210(c)(8), (9), and (10) of the Act
The recent exemptions that were granted concern a request made on August 23, 2017 by The Clearing House Association L.L.C. (TCH) and the Securities Industry and Financial Markets Association (SIFMA). The associations jointly submitted a written request for seven separate exemptions from certain recordkeeping requirements of the rule.
Related Link: Rule in Federal Register (PDF)
Effective Date: December 21, 2018
Keywords: Americas, US, Banking, OLA, Recordkeeping, Resolution, Qualified Financial Contracts, Dodd Frank Act, FDIC, US Treasury
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