Exclusion of certain QFCs.

CFR · 2024-01-01 · US · Title 12

(a) (1) A CCP is party; or (2) Each party (other than the covered FSI) is an FMU. (b) (1) The affiliate credit enhancement provider with respect to the covered QFC, then the covered FSI is required to conform the credit enhancement to the requirements of this part but is not required to conform the direct QFC to the requirements of this part; or (2) The direct party to which the covered entity or covered bank is the affiliate credit enhancement provider, then the covered FSI is required to conform the direct QFC to the requirements of this part but is not required to conform the credit enhancement to the requirements of this part. (c) (1) An investment advisory contract that: (i) Is with a retail customer or counterparty; (ii) Does not explicitly restrict the transfer of the contract (or any QFC entered into pursuant thereto or governed thereby, or any interest or obligation in or under, or any property securing, any such QFC or the contract) from the covered FSI except as necessary to comply with section 205(a)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-5(a)(2)); and (iii) Does not explicitly provide a default right with respect to the contract or any QFC entered pursuant thereto or governed thereby. (2) A warrant that: (i) Evidences a right to subscribe to or otherwise acquire a security of the (ii) Was issued prior to January 1, 2018. (d) (1) The potential impact of the exemption on the ability of the covered FSI(s), or affiliates of the covered FSI(s), to be

official document · source cfr-2024 · id 12:§ 382.7