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The SEC staff provided no-action relief (in three separate letters) to security-based swap dealers ("SBSDs") from certain financial reporting requirements.
In a letter to SIFMA, the Division of Trading and Markets (the "Division") provided no-action relief (1) to SBSDs subject to a prudential regulator, for filing FOCUS Report Part IIC within the earlier of the time period for filing their Call Reports or 35 days prior to the end of the quarter; and (2) to non-bank, non-broker-dealer SBSDs for making publicly available on their websites their midyear unaudited financial statements no later than 55 days after the date of the statements.
In separate letters to Skandinaviska Enskilda Banken AB and the Canadian Bankers Association, the Division stated that it will not recommend enforcement action in reference to the relevant firms if each firm periodically files with the SEC or its designee unaudited financial and operational information in conformity with (1) a previous SEC order as to the manner and format of such filings, as applicable to firms relying on substituted compliance, and (2) International Financial Reporting Standards, as issued by the International Accounting Standards Board (which are Generally Accepted Accounting Principles in both Sweden and Canada).
The SEC stated that this relief is contingent on the entities promptly alerting the Division staff of their failure to maintain the minimum amount of regulatory capital required by Swedish or Canadian law, as applicable. In addition, the SEC stated that Canadian banks relying on the relief must file their financial and operational information no later than 35 days prior to the end of each Canadian reporting quarter.
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