The CFTC’s Division of Swap Dealer and Intermediary Oversight issued a no-action letter to futures commission merchants, swap dealers and major swap participants, referred to as registrants, that provides relief from certain requirements under Regulation 3.3(f). The Regulation requires registrants to give the Commission their Chief Compliance Officer, or CCO, annual report not more than 60 days after the end of their fiscal year.
The letter grants registrants an additional 30 days to provide their annual reports to the Commission. The letter further states that the relief will remain in effect until the adoption of a rule or rule amendment that modifies the timing requirements of Regulation 3.3(f)(2), and that the Division retains the authority to condition further, modify, suspend, terminate, or otherwise restrict the terms of the no-action relief provided, in its discretion.
The no-action letter request was submitted by the Futures Industry Association and International Swaps and Derivatives Association. Although those organizations did not request it, the CFTC extended the relief to major swap participants.
In granting the relief the CFTC recognized that the work and time that a CCO dedicates to the preparation of the annual report has value apart from informing the Commission as to the status of compliance at the registrant. The CFTC believes an additional 30 days will allow CCOs to devote sufficient time and resources to the creation of a report that facilitates an in-depth, substantial discussion on the state of the compliance program with the registrant’s senior management or board of directors.
It was also noted that futures commission merchants and swap dealers that are dually registered as broker-dealers have an annual report requirement as well under FINRA’s broker-dealer rules that occurs on or near 90 days after their fiscal year-end. A common deadline will increase the accuracy of all reports