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khammond on DSKJM1Z7X2PROD with NOTICES3

Federal Register / Vol. 86, No. 145 / Monday, August 2, 2021 / Notices counterparty credit risk, 490 which is relevant to Exchange Act rule 18a 6b1ix. 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 18a 6b1ix.
The commenter recommended removing from paragraph f2iI1 of the Order the reference to CRD articles 75 through 87 and their French implementing provisions, reasoning that these provisions cover various capital matters that do not correspond to, and go beyond, the requirements of Exchange Act rule 18a6b1ix. The Commission disagrees, because these provisions are cited in the French Authorities Application as directly relevant due to the risk management arrangements, policies and procedures required to be implemented under these provisions.491 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 paragraphs f1iK and f2iM of the Order employment application record creation and preservation references to MiFID
articles 91 and 163 and their French implementing provisions, reasoning that these provisions do not relate to recordkeeping. Both provisions require recordkeeping in practice through their requirements to monitor conflicts of interest. 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 5a10 and b8 and Exchange Act rule 18a6d1.
The commenter recommended adding to paragraphs f2iL and f2iO
of the Order the reference to MiFID Org Reg article 211f with respect to Exchange Act rules 18a6c organizational records and d3
compliance records. The Commission agrees this provision is relevant because it requires firms to maintain adequate and orderly records of their business and internal organization. Therefore, the Commission is adding MiFID Org Reg article 211f of the Orders list of EU and French requirements comparable to Exchange Act rule 18a 6c and d3.492
490 See French Authorities Application Annex I
category 2 at 60.
491 See French Authorities Application Annex I
category 2 at 5859.
492 See paras. f2iL and f2iO1 of the Order.

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c. Exchange Act Rule 18a7
The commenter recommended deleting from paragraphs f3iA and f3iiA references to CRD article 1041j relating to supervisory power of authorities to impose additional reporting requirements, reasoning that this provision does not correspond to, and goes beyond the requirements of Exchange Act rule 18a7a1 and a2, and a3. The Commission agrees. Accordingly, the Commission is removing references to these requirements and references to related implementing regulations MFC article L.
61224 and Decree of 20 February 2007
relating to prudential requirements article 6 from the Orders list of EU and French law requirements comparable to Exchange Act rule 18a7a1 and a2.493
The commenter recommended deleting from paragraph f3iiA
references to CRR articles 431 through 455 relating to public disclosures, reasoning that such provisions do not relate to regulatory reporting. However, the French Authorities Application cites CRR articles 431, 433, 452, 454, and 455 as requiring, among other things, firms to make Pillar III
disclosures which include information on the use of capital models and matters such as credit risk, the exposure values by class of exposures subject to evaluation using models, and internal controls on the development and use of models.494 This information is relevant to Rule 18a7a3 and 18a7j.
Accordingly, the Commission is removing references to CRR articles 431
through 455 except for CRR articles 431, 433, 452, 454, and 455 in the Orders list of EU and French law requirements comparable to Exchange Act rule 18a 7a3 and 18a7j.495
The commenter recommended deleting from paragraph f3iiA
references to Accounting Directive article 34, French Commerce Code articles L. 2321, R. 2321 through R.
2328, and L. 8231 through L. 8238
1, relating to general publication requirements for financial statements, and to the appointment of external financial auditors. The commenter reasoned that these provisions do not correspond to, and go beyond, the requirements of Exchange Act rule 18a 7a3 and 18a7j. The Commission agrees. Accordingly, the Commission is removing references to these EU and French law requirements in the Orders 493 See paras. f3iA and f3iiA of the Order.
494 See French Authorities Application Annex I
Category 2 at 9193.
495 See para. f3iiA of the Order.

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list of requirements comparable to Exchange Act rule 18a7a3 and 18a 7j.496
The commenter recommended deleting from paragraph f3iii references to CRR articles 435436, 441, 444, and 450 stating that these provisions are not in the UK Proposed Order, as well as Accounting Directive article 34, and French Commerce Code articles L. 2321, R. 2321 through R.
2328, L. 8231 through L. 82381.
The commenter reasoned that these provisions do not correspond to, and go beyond, the requirement requirements of Exchange Act rule 18a7b. The Commission disagrees. The French Authorities Application states that pursuant to CRR articles 431 to 455, CRR firms are required to make Pillar III public disclosures at least annually in connection with the publication, and that such disclosures cover a variety of matters including, among other things, capital resources and capital requirements. Furthermore, in referencing CRR articles 431 to 455, the French Authorities Application states that the requirements are comparable to analogous requirements under relevant provisions of Exchange Act rule 18a 7b.497 Accordingly, the references to these EU and French law requirements, and is instead including references to CRR articles 431 to 455 in the Orders list of requirements comparable to Exchange Act rule 18a7b.498 With respect to Accounting Directive article 34, and French Commerce Code articles L. 2321, R. 2321 through R. 2328, L.
8231 through L .82381, the Commission agrees with the commenter regarding references to Accounting Directive article 34, but disagrees with respect to the references to French Commerce Code L. 2321, R. 2321
through R. 2328, L. 8231 through L.
82381. The French Authorities Application states that credit institutions and investment firms must have their financial statements audited, and must publish their financial statements and management report annually pursuant to Accounting Directive articles 30 and 34. These requirements are relevant to Exchange Act rule 18a7b. Accordingly, the Commission is deleting references to Accounting Directive article 34, but is not deleting reference to French Commerce Code L. 2321, R. 2321
through R. 2328, L. 8231 through L.
82381 in the Orders list of 496 See 497 See
para. f3iiA of the Order.
French Authorities Application Annex I

at 9394.
498 See para. f3iii of the Order.

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