There are two main scenarios where a reporting entity may defer the reporting of customer or counterparty information.
Scenario A: A jurisdiction allows a reporting entity to report customer or counterparty information only with the consent of its customer or counterparty, and the reporting entity had made reasonable efforts to obtain the necessary consent but was unable to obtain it by the time reporting is due. The reporting entity is to continue trying to obtain the necessary consent, and report the customer or counterparty information when it is obtained.
The relief in Scenario A is only applicable for a derivatives contract entered into before 1 January 20197. The reporting entity is required to report customer or counterparty information by 1 July 2019, unless the reporting entity continues to be subject to the requirement to seek consent and was unable to obtain the necessary consent despite having made reasonable efforts. In this case, the reporting entity is to report the customer or counterparty information within a month from the date that (i) the necessary consent is obtained, or (ii) the requirement to seek consent is no longer applicable to the derivatives contract in question, whichever is earlier.
Scenario B: A jurisdiction specified in the Fifth Schedule of the SF(RDC)R prohibits a reporting entity from reporting customer or counterparty information at the time reporting is due.
If the law of the applicable jurisdiction subsequently no longer prohibits the reporting of customer or counterparty information relating to the derivatives contract in question, the reporting entity is required to report customer or counterparty information by 1 July of the following year. For example, where such a change in law occurs in 2018, the reporting entity is required to report customer or counterparty information by 1 July 2019. However, the reporting entity may continue to defer the reporting of customer or counterparty information if the effect of the change in law is such that the reporting entity is allowed to report customer or counterparty information only with the consent of its customer or counterparty, and the reporting entity had made reasonable efforts to obtain the necessary consent but was unable to obtain it. In this case, the reporting entity is to report the customer or counterparty information within a month from the date that (i) the necessary consent is obtained, or (ii) the requirement to seek consent is no longer applicable to the derivatives contract in question, whichever is earlier.
In all of the above-described circumstances, reporting of customer or counterparty information is only required for derivatives contracts which remain outstanding as at the applicable reporting deadline.
References:
- Regulations 11, 11A and 11C of the SF(RDC)R
- Fifth Schedule to the SF(RDC)R
7 There is no relief provided for derivatives contracts entered into on or after 1 January 2019.