Featured Product

    US Treasury on Exemption from QFC Recordkeeping Requirements

    January 02, 2020

    The US Treasury, after a consultation with FDIC, is issuing a determination regarding a request for an exemption from certain requirements of the rule implementing the qualified financial contracts, or QFCs, recordkeeping requirements related to the Orderly Liquidation Authority under the Dodd-Frank Act. The exemption extends only to Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC (FiNet) and to no other entities. The granted exemption becomes effective January 02, 2020.

    On October 31, 2016, a final rule was published under the Dodd-Frank Act, requiring certain financial companies to maintain records with respect to their qualified financial contract positions and the associated counterparties, including legal documentation and collateral. On August 14, 2018, Wells Fargo & Company submitted, to the US Treasury, FDIC, SEC, and CFTC, a request for an exemption from sections 148.3 and 148.4 of the rule, on behalf of its subsidiaries WFCS and FiNet. The requested exemption related to the compliance with  regarding the current and future qualified financial contract portfolio consisting of qualified financial contracts entered into by WFCS or FiNet, with or on behalf of clients (client activity qualified financial contracts) and QFCs entered into by WFCS or FiNet in connection with or in support of client activity qualified financial contracts. Wells Fargo also asked for an exemption from certain guarantees WFCS enters into for the benefit of a futures commission merchant in connection with WFCS' introduction of customer trades to such futures commission merchant.

    The US Treasury has determined to exempt WFCS and FiNet from the recordkeeping requirements of the rule with respect to any qualified financial contract with clients that are their respective customers under the Securities Investor Protection Act, with respect to any transactions or accounts such customers have with WFCS and FiNet, respectively, subject to certain conditions. The US Treasury does not expect that granting this exemption will unduly interfere with the FDIC's ability to avoid or mitigate serious adverse effects on financial stability or economic conditions in the United States. Treasury has determined to exempt any guarantees of such qualified financial contracts by a third party if the guarantor is an affiliate of the customer, is itself a customer of WFCS or FiNet, as applicable, or does not have any other qualified financial contract with WFCS or FiNet, as applicable. In addition, Treasury has determined to exempt WFCS from recordkeeping requirements of the rule with respect to any qualified financial contract entered into by WFCS with a clearing organization for the purpose of facilitating the clearance or settlement of any qualified financial contract subject to the exemption. 

     

    Related Link: Federal Register Notice 

    Keywords: Americas, US, Banking, Securities, QFC, Recordkeeping, Dodd Frank Act, FDIC, US Treasury

    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514