RegAlert2018-12-12
Added · Updated
SEC Division of Trading and Markets no-action letter: Securities Industry and Financial Markets Association
The Division extends the effectiveness of its no-action position until the earlier of the date an anti-money laundering program rule for investment advisers becomes effective or two years from the letter's date. Under this extension, the Division will not recommend enforcement action under Exchange Act Rule 17a-8 if a broker-dealer treats a U.S. registered investment adviser as subject to an anti-money laundering program rule for purposes of the Customer Identification Program Rule and Beneficial Ownership Requirements. This relief is contingent upon the broker-dealer's reliance being reasonable, the investment adviser maintaining a compliant anti-money laundering program, and entering into a contract requiring annual certification, prompt disclosure of suspicious activity, and access to books and records.
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~o Excy,~, ,~ c~, UNITED STATES g~c SECURITIES AND EXCHANGE COMMISSION m ti WASHINGTON, DC 20549 d~~~ *~o DIVISION OF TRADING AND MARKETS Ms. Aseel M. Rabie Managing Director and Associate General Counsel Securities Industry and Financial Markets Association 1101 New York Avenue, NW, 8th Floor Washington, DC 20005 Re: Request for No-Action Relief Under Broker-Dealer Customer Identification Program Rule (31 C.F.R. § 1023.220) and Beneficial Ownership Requirements for Legal Entity Customers (31 C.F.R. § 1010.230) Dear Ms. Rabie:
In your letter dated December 7, 2018 you request assurances that the staff of the Division of Trading and Markets (the "Division") will not recommend enforcement action to the Securities and Exchange Commission (the "SEC" or the "Commission") under Rule 17a-8 under the Securities Exchange Act of 1934 ("Exchange Act") if a broker-dealer relies on a registered investment adviser to perform some or all of its obligations under the customer identification program ("CIP") rule, 31 C.F.R. § 1023.220 ("CIP Rule"), and/or the portion of the customer due diligence rule regarding beneficial ownership requirements for legal entity customers, 31 C.F.R. § 1010.230 ("Beneficial Ownership Requirements"), subject to certain enumerated conditions set forth in your incoming letter. Specifically, you request that the Division extend the effectiveness of a no-action position that it took in 2016, which is substantially similar to previous noaction positions first taken by the Division in 2004, and also applied the principles underlying that position to the Beneficial Ownership Requirements.l See Letter from Annette L. Nazareth, Director, Division of Market Regulation, SEC, to Alan Sorcher, Securities Industry Association, dated Feb. 12, 2004 (the "2004 Letter"); Letter from Annette L. Nazareth, Director, Division of Market Regulation, SEC, to Alan Sorcher, Securities Industry Association, dated Feb. 10, 2005; Letter from Robert L.D. Colby, Acting Director, Division of Market Regulation, 5EC, to Alan Sorcher, Securities Industry Association, dated Jul. 11, 2006; Letter from Erik Sirri, Director, Division of Trading and Markets, SEC, to Alan Sorcher, Securities Industry and Financial Markets Association ("SIFMA"), dated Jan. 12, 2008; Letter from Daniel M. Gallagher, Jr., Deputy Director,
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SEC published 7 documents in the last 30 days. We email you each new one the day it's published.