Comment Text:
The provision for certification of compliance by a Chief Compliance Officer must be conducted by a person of adequate training and experience. An example of typical requirements from a major financial institution is the following:
• Demonstrated experience with the implementation and execution of swap dealer compliance program at a registered swap dealer.
• Demonstrated understanding of the requirements of the Dodd-Frank Act and associated regulations relating to swap dealers, including applicable CFTC, NFA and FRB rules and regulations.
• Experience interacting with regulators, in particular, CFTC, NFA, and FRB.
• Experience reporting to senior management.
• Familiarity with sales and trading of over-the-counter and exchange traded derivatives.
• Outstanding written (drafting & editing) and spoken communication abilities.
• Excellent teamwork, interpersonal and conflict resolution skills.
• Highly organized and capable of dealing with multiple, complex projects simultaneously.
• BS, BA or international equivalent, JD preferred, but not required.
The Chief Compliance Officer should have such adequate training and experience, in order to interpret, understand, inform, and review compliance with applicable regulations and good accounting and financial practices. The report should require the CCO to affirm that he
Has adequate experience, training, and assistance in the form of personnel, methods, procedures, and record keeping to allow him to make an informed decison about the report on compliance and any likely instances of non-comploiance. The report should also affirm that the CCO knows and understands the reporting requirement and the consequences of any failure to provide accurate, reliable information so that a CCO may be liable, in civil, criminal, or regulatory proceedings for any deficiency or failure to provide adequate information.
Other than that, the requirement for a report on compliance by a CCO is reasonable, and the burden estimated is reasonable given the importance of compliance to the stability and risk management of the financial system by market makers and swap dealers.
