Rule 3a71-6 Substituted Compliance for Foreign Security-Based Swap Entities

3a71-6 provides that the Commission may, conditionally or unconditionally, by order, make a determination with respect to a foreign financial regulatory system that compliance with specified requirements under such foreign financial regulatory system by a registered non-U.S. security-based swap dealer or non-U.S. major security-based swap participant (collectively “SBS Entities), or class thereof, may satisfy certain business conduct requirements by complying with the comparable foreign requirements. The availability of substituted compliance would be predicated on a determination by the Commission that the relevant foreign requirements are comparable to the requirements that otherwise would be applicable, taking into account the scope and objectives of the relevant foreign requirements, and the effectiveness of supervision and enforcement under the foreign regulatory regime. Rule 3a71-6 was initially adopted in April 2016 as part of the SEC’s rules implementing business conduct standards for SBS entities. It was amended twice in 2019 : once in June 2019 to include the SEC’s capital and margin requirements applicable to SBS entities as provisions for which foreign SBS entities could seek approval to use substituted compliance, and again in September 2019 to include the SEC’s recordkeeping and reporting requirements applicable to SBS entities. An ICR was submitted to and approved by OMB with respect to the initial April 2016 adoption and another for the June 2019 amendments. However, due to an oversight, an ICR was not submitted with respect to the September 2019 amendments prior to the rule amendments becoming effective. We are seeking to revise the estimated burdens in light of the September 2019 amendments for OMB review and are seeking expedited review if possible.

The latest form for Rule 3a71-6 Substituted Compliance for Foreign Security-Based Swap Entities expires 2027-09-30 and can be found here.

Substituted Compliance Requests by SBS Entities (d)(1)-(3)

Federal Enterprise Architecture: Economic Development - Financial Sector Oversight