CFTC Advisory on Annual Compliance Reports: CFTC Staff Advisory on Chief Compliance Officer Annual Reports for Swap Dealers, Futures Commission Merchants and Major Swap Participants

Sullivan & Cromwell LLP - December 9, 2019

On December 4, the Division of Swap Dealer and Intermediary Oversight of the Commodity Futures Trading Commission issued an advisory to provide further guidance on certain requirements applicable to swap dealers, futures commission merchants, and major swap participants in connection with the preparation and submission of chief compliance officer annual compliance reports pursuant to CFTC Rule 3.3. Amongst other issues, the advisory provides guidance on the requirements to: (1) discuss areas for improvement; (2) discuss the financial, managerial, operational, and staffing resources devoted to compliance; (3) describe any material noncompliance issues; (4) furnish the annual report to a registrant’s board or senior officer and, if it exists, audit committee; (5) include in the report an “accurate and complete” certification by either the chief compliance officer or the chief executive officer; and (6) include, if applicable, a discussion of the registrant’s Volcker Rule compliance program.