On November 25, 2014, the Commodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight (DSIO) issued a no-action letter permitting the chief compliance officer (CCO) of a provisionally registered swap dealer to consult and meet with the swap dealer’s governing body, in lieu of its board of directors or senior officer as required by CFTC Regulations 3.3(a) and 3.3(d). While the CCO is not required to meet annually with the board of directors or senior officer under the terms of the no-action relief, the CCO must retain the ability to meet with the board or senior officer at his or her discretion.
Among other things, the no-action letter additionally requires the swap dealer’s board of directors or senior officer to retain responsibility for appointing the CCO and approving his or her compensation. In addition, the CCO must continue to prepare and provide his or her annual report to the board of directors or senor officer under CFTC Regulations 3.3(e) and 3.3(f). A summary of the CCO’s consultations with the governing body also must be included in the CCO’s annual report.
The no-action letter is available here.