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

requirements: MiFID articles 16 and 23;
MFC articles L. 5332, L. 53310.II and III, L. 53324 and L. 533241; MiFID
Org Reg articles 21 through 37, 72
through 76 and Annex IV; CRD articles 74, 76, 79 through 87, 881, 911 and 2, 917 through 9, 92, 94 and 95; and MFC L. 511411B and L. 511411
C, L. 51151, L. 51152.I, L. 511.53, L.
51155 through L. 51169, L. 51171
through 85, L. 51189 through L. 511
97, L. 511102, R. 511162 and R. 511
163; Internal Control Order articles 106, 111, 114, 115, 12122, 13034, 14686, 21112, 21415; and CRR
articles 28688 and 293; and EMIR
Margin RTS article 2.
4 Additional condition to paragraph d1. Paragraph d1 further is conditioned on the requirement that the Covered Entity complies with the provisions specified in paragraph d3
as if those provisions also require compliance with:
i Applicable requirements under the Exchange Act; and ii The other applicable conditions of this Order in connection with requirements for which the Covered Entity is relying on this Order.
e Substituted Compliance in Connection With Counterparty Protection Requirements This Order extends to the following provisions related to counterparty protection:
1 Disclosure of information regarding material risks and characteristics. The requirements of Exchange Act rule 15Fh3b relating to disclosure of material risks and characteristics of one or more securitybased swaps subject thereto, provided that the Covered Entity, in relation to that security-based swap, is subject to and complies with the requirements of MiFID article 244; MFC L. 53312.II
and D. 53315; and MiFID Org Reg articles 4850.
2 Disclosure of information regarding material incentives or conflicts of interest. The requirements of Exchange Act rule 15Fh3b relating to disclosure of material incentives or conflicts of interest that a Covered Entity may have in connection with one or more security-based swaps subject thereto, provided that the Covered Entity, in relation to that security-based swap, is subject to and complies with the requirements of either:
i MiFID articles 232 and 3; MFC
L. 53310.II3; and MiFID Org Reg articles 33 through 35;
ii MiFID article 249; MFC L. 533
124; MiFID Delegated Directive article 115; and AMF General Regulation article 31417; or
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iii MAR article 201 and MAR
Investment Recommendations Regulation articles 5 and 6.
3 Know your counterparty. The requirements of Exchange Act rule 15Fh3e, as applied to one or more security-based swap counterparties subject thereto, provided that the Covered Entity, in relation to the relevant security-based swap counterparty, is subject to and complies with the requirements of MiFID article 162; MFC L 53310.II2; MiFID Org Reg articles 21 and 22, 25 and 26 and applicable parts of Annex I; CRD articles 741 and 851; MFC L. 51155 and L.
511411B; MLD articles 11 and 13;
MFC L. 5615, L. 56151, L. 5616, L.
56110, L. 56141, R. 5615, R. 561
51, R. 56152, R. 56154, R. 5617, R. 561103, R. 561111, and R. 561
12; MLD articles 83 and 84a as applied to internal policies, controls and procedures regarding recordkeeping of customer due diligence activities; and MFC L. 56141 as applied to vigilance measures regarding recordkeeping of customer due diligence activities.
4 Suitability. The requirements of Exchange Act rule 15Fh3f, as applied to one or more recommendations of a security-based swap or trading strategy involving a security-based swap subject thereto, provided that:
i The Covered Entity, in relation to the relevant recommendation, is subject to and complies with the requirements of MiFID articles 242 and 3, and 251 and 2; MFC L. 53324, L. 533
241, L. 53312I, L. 533126, and L.
53313I; and MiFID Org Reg articles 211b and d, 54 and 55; and ii The counterparty to which the Covered Entity makes the recommendation is a professional client mentioned in MiFID Annex II
section I and MFC D. 53311 and is not a special entity as defined in Exchange Act section 15Fh2C and Exchange Act rule 15Fh2d.
5 Fair and balanced communications. The requirements of Exchange Act rule 15Fh3g, as applied to one or more communications subject thereto, provided that the Covered Entity, in relation to the relevant communication, is subject to and complies with the requirements of:
i Either MiFID articles 241 and 3
and MFC L. 53311 and L. 53312.I or MiFID article 301 and MFC L. 53320;
and ii MiFID articles 244 and 5; MFC
L. 53312II and III and D. 53315;
MiFID Org Reg articles 46 through 48;
MAR articles 121c, 15 and 201; and MAR Investment Recommendations Regulation articles 3 and 4.

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6 Daily mark disclosure. The requirements of Exchange Act rule 15Fh3c, as applied to one or more security-based swaps subject thereto, provided that the Covered Entity is required to reconcile, and does reconcile, the portfolio containing the relevant security-based swap on each business day pursuant to EMIR articles 111b and 112 and EMIR RTS article 13.
f Substituted Compliance in Connection With Recordkeeping, Reporting, Notification, and Securities Count Requirements This Order extends to the following provisions that apply to a Covered Entity related to recordkeeping, reporting, notification and securities counts:
1i Make and keep current certain records. The requirements of the following provisions of Exchange Act rule 18a5, provided that the Covered Entity complies with the relevant conditions in this paragraph f1i and with the applicable conditions in paragraph f1ii:
A The requirements of Exchange Act rule 18a5a1 or b1, as applicable, provided that:
1 The Covered Entity is subject to and complies with the requirements of MiFID Org Reg articles 74, 75, and Annex IV; MiFIR article 251; and Internal Control Order articles 85, 87, 92, and 93; and 2 With respect to the requirements of Exchange Act rule 18a5a1, the Covered Entity applies substituted compliance for the requirements of Exchange Act section 15Fe and Exchange Act rules 18a1 through 18a 1d pursuant to this Order.
B The requirements of Exchange Act rule 18a5a2, provided that:
1 The Covered Entity is subject to and complies with the requirements of CRD article 73; MiFID Delegated Directive article 2; MiFID Org Reg articles 72, 74 and 75; EMIR article 394; MFC article L. 511411B; Decree of 6 September 2017 article 3; AMF
General Regulation article 3126; and Internal Control Order articles 85, 87, 92, and 93; and 2 The Covered Entity applies substituted compliance for the requirements of Exchange Act section 15Fe and Exchange Act rules 18a1
through 18a1d pursuant to this Order;
C The requirements of Exchange Act rule 18a5a3 or b2, as applicable, provided that:
1 The Covered Entity is subject to and complies with the requirements of MiFID Delegated Directive article 2;
MiFID Org Reg articles 72, 74 and 75;

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