CFTC Market Participants Division ("Division") staff provided financial reporting relief to nonbank swap dealers ("SDs") in Australia and Singapore.
The Division stated that it will not recommend enforcement action pursuant to CFTC Regulation 23.105(e) ("Financial recordkeeping, reporting and notification requirements for swap dealers and major swap participants") against specified nonbank SDs, that prepare their annual audited financial reports in accordance with their home country standards in lieu of generally accepted accounting principles as adopted in the United States ("U.S. GAAP")
CFTC Letter 22-01, addressed to Goldman Sachs Financial Markets Pty Ltd, based in Australia, permits filing with the CFTC and NFA annual audited reports that contain all of the financial statements and footnote disclosures required by CFTC Regulation 23.105(e), prepared in accordance with Australian Accounting Standards Board ("AASB") in lieu of U.S. GAAP. Similar relief was provided in CFTC Letter 22-02 to Morgan Stanley Capital Group (Singapore) Pte. and J. Aaron & Company (Singapore) Pte.
The relief is subject to conditions, including that:
- Each SD prepares and files with the CFTC and NFA specified reconciliation of certain statements; and
- Each SD notifies the CFTC if there are any substantial differences between the AASB and Singapore Financial Reporting Standards (or "SFRS"), respectively, and International Financial Reporting Standards that would result in material differences to its annual audited financial reporting.
Primary Sources
- CFTC Letter 22-01: No-Action Position for Goldman Sachs Financial Markets Pty Ltd to File Annual Financial Reports in Accordance with Australian Accounting Standards Board
- CFTC Letter 22-02: No-Action Relief for Morgan Stanley Capital Group (Singapore) Pte. and J. Aron & Company (Singapore) Pte. to File Annual Financial Reports in Accordance with Singapore Financial Reporting Standards
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