If a reporting entity is relying on the deferment relief provided for in Scenario B in A5.2, and the jurisdiction subsequently changes its law such that the reporting entity is no longer prohibited from reporting customer or counterparty information, a transition period is provided for the reporting entity dealing with the change. A reporting entity may continue to enter into derivatives contracts and defer the reporting of customer or counterparty information until 1 July of the year following the change in law. For instance, where the change in law occurs in 2018, the reporting entity may continue to enter into derivatives contracts until 1 July 2019 with deferred reporting of customer or counterparty information.
However, the reporting entity is required to report customer or counterparty information by the end of the transition period (i.e. 1 July 2019 in the given example), unless 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within a month from the date that (i) the necessary consent is obtained, or (ii) the requirement to seek consent is no longer applicable to the derivatives contract in question, whichever is earlier.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.
Please also refer to Q5.4 for more information on the requirement for reporting entities to seek customer or counterparty consent.
References:
- Regulations 11B and 11C of the SF(RDC)R
- Fifth Schedule to the SF(RDC)R