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Federal Register / Vol. 86, No. 145 / Monday, August 2, 2021 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES3

supervisory power of authorities to impose additional reporting requirements which the Commission believes does not correspond to, and goes beyond the requirements of Exchange Act rule 18a6. Therefore, references in the Order to CRD article 1041j and its French implementing provisions are not included.483
The commenter recommended deleting references to MiFID Org Reg article 59, which sets out the requirement to confirm execution of an order to the client, reasoning that it does not correspond to, and goes beyond, the requirements of Exchange Act rules 18a5 and 18a6. MiFID Org Reg article 59 identifies specific data elements that are relevant to the records required to be created under Exchange Act rule 18a5, so the Commission is not removing references to this requirement from the Orders list of EU and French law requirements comparable to Exchange Act rule 18a5. However, the Commission believes that MiFID Org Reg article 59 relates to record creation but not record preservation and is therefore removing references to this requirement from the Orders list of EU
and French law requirements comparable to Exchange Act rule 18a 6.484
The commenter recommended adding to paragraphs f1 and f2 of the Order references to Internal Control Order articles 85, 86, 92, and 93, which impose audit trail requirements. The Commission agrees these requirements are relevant because they relate to record creation and preservation, and is therefore adding them to the Orders list of EU and French requirements comparable to Exchange Act rules 18a 5 and 18a6.485
The commenter recommended deleting from paragraphs f2iA and f2iB of the Order references to MiFID article 692 and its French implementing provisions, because these provisions relate to the powers of the competent authorities rather than the obligations of the entity. The Commission disagrees, because a regulator can only have access to any document or data . . . relevant for the performance of its duties as required by MiFID article 692 if firms are required to preserve these documents and data. Accordingly, the Commission 483 See paras. f2iE1 and f2iH1 of the Order.
484 See paras. f2iA, f2iB, f2iD, and f2iG1 of the Order.
485 See paras. f1iA1, f1iB1, f1iD1, f1iF1, f1iG1, f1iH1, f1iI1, f1iK, f1iN1, f1iO1, f2iC1, f2iD, f2iE1, and f2iH1 of the Order.

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is not removing references to these requirements from the Orders list of EU
and French law requirements comparable to Exchange Act rule 18a 6a1, a2, b1i, and b2i.
The commenter recommended adding to paragraphs f2I1 and f2J1
of the Order references to Internal Control Order articles 94 through 96 and 99 through 102, which require firms to implement risk analysis, measurement and management systems. The Commission agrees these requirements are relevant because these systems in practice will require preservation of risk management and counterparty credit risk records, and is therefore adding them to the Orders list of EU and French requirements comparable to Exchange Act rules 18a6b1ix and b1x.486
The commenter recommended replacing in paragraph f1iK of the Order references to MiFID Org Reg article 211a with references to MiFID
Org Reg article 211d due to an incorrect reference in the French Authorities Application with respect to Exchange Act rule 18a5a10 and b8. The Commission agrees with the commenters reasoning and is therefore replacing references to MiFID Org Reg article 211a with references to MiFID
Org Reg article 211d in the Orders list of EU and French law requirements comparable to Exchange Act rule 18a 5a10 and b8.487
The commenter recommended replacing in paragraphs f1iN1
and f1iO1 of the Order references to EMIR RTS article 151 with EMIR
RTS article 151a with respect to Exchange Act rule 18a5a18 and b14 because the remainder of article 151 does not include a record creation requirement. The Commission agrees with the commenters reasoning and is therefore replacing references to EMIR
RTS article 151 with EMIR RTS article 151a in the Orders list of EU and French law requirements comparable to Exchange Act rule 18a5a18 and b14.
The commenter recommended deleting from paragraph f2E1 of the Order references to CRR and CRR
Reporting ITS, which relate to supervisory reports to be made, reasoning that they do not correspond to, and go beyond, the requirements of Exchange Act rule 18a6b1v.
Although these laws relate to reporting requirements, the information required to be included in these reports is relevant to the records required by 486 See
paras. f2iI1 and f2iJ1 of the
Order.
487 See para. f1iK of the Order.

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Exchange Act rule 18a6b1v. In addition, the French Authorities Application specifically cites these requirements as comparable to Exchange Act rule 18a6b1v.488
Accordingly, the Commission is not removing references to this requirement from the Orders list of EU and French law requirements comparable to Exchange Act rule 18a6b1v.
The commenter recommended adding to paragraphs f2iF and f2iK1 of the Order a reference to MFC article L. 56112 with respect to Exchange Act rules 18a6b1vi and b2iii records of discretionary authority for security-based swap accounts and b1xii and b2vii business conduct records. The Commission agrees this provision is relevant because it requires firms to keep documents relating to business relationships and customers for 5 years after an account is closed. Therefore, the Commission is adding MFC article L.
56112 to the Orders list of EU and French requirements comparable to Exchange Act rules 18a6b1vi, b1xii, b2iii, and b2vii.489
The commenter recommended deleting from paragraph f2iI1 of the Order references to CRR articles 286
and 2931d, which relate to the use of internal models for credit risk, reasoning that they do not correspond to, and go beyond, the requirements of Exchange Act rule 18a6b1ix. The policies, processes and systems with respect to CRR article 286 and adequate resources devoted to credit and counterparty risk control with respect to CRR article 2931d in practice require firms to maintain records relevant to Exchange Act rule 18a6b1ix. Accordingly, the Commission is not removing references to these requirements from the Orders list of EU and French law requirements comparable to Exchange Act rule 18a 6b1ix.
The commenter recommended deleting from paragraph f2iI1 of the Order references to EMIR RTS, reasoning that referencing an entire law without referencing a specific provision does not correspond to, and goes beyond, the requirements of Exchange Act rule 18a6b1ix. This provision is cited by the French Authorities Application as directly relevant because it requires firms to have formalised processes to measure, monitor and mitigate operational risk and 488 See French Authorities Application Annex I
category 2 at 5152.
489 See paras. f2iF and f2iK1 of the Order.

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