The Secretary of the Treasury, as Chair of the Financial Stability Oversight Council ("FSOC"), proposed an amendment to extend the compliance date of regulations implementing qualified financial contract ("QFC") recordkeeping requirements for certain non-bank financial companies that may pose systemic risk.
In order to facilitate the FDIC resolution of failing banks under the FDIC's Orderly Liquidation Authority, Treasury had adopted final rules that require non-bank financial companies that meet specified systemic risk thresholds ("records entities") to maintain specified records concerning QFC positions, counterparties, legal documentation and collateral. The rules provided staggered compliance dates and granted the Treasury Secretary (in consultation with the FDIC) discretion to provide exemptions as well as extensions of the compliance dates.
The Treasury Secretary is proposing a six-month extension of the compliance dates to address various pending exemption requests. The intention is to provide adequate time for parties subject to the rules to implement them once their scope is determined in light of the exemption requests. The Treasury Secretary also noted that the proposal furthers the Administration's "general policy of alleviating unnecessary regulatory burdens."
The Secretary is requesting comments on whether (i) the compliance date should be extended at all, (ii) the proposed six-month extension is the proper length of time, and (iii) an extension should be granted only with respect to records entities with a June 23, 2018 compliance date. Comments are due by January 29, 2018.
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