Proposed Model Legislation to Regulate Credit Default Swaps

SIFMA provides comments to the National Conference of Insurance Legislators (NCOIL) on the proposed rulemaking clarifying the scope of the statutory prohibition against the disclosure of a Suspicious Activity Report (SAR) and the proposed related interpretative guidance that permits the sharing of a SAR among US affiliates of broker-dealers in securities, mutual funds, futures commissions merchants and introducing brokers in commodities.  SIFMA offers several comments and suggestions, including : all financial institutions subject to a SAR rule within the entities’ corporate organizational structure should be permitted to share a SAR.; Third party service providers retained by a Designated Entity should be expressly included in the definition of “agent” for purposes of accessing SAR databases; a recipient of SAR should be permitted to share a SAR with all affiliates within an organization structure; each organizational structure should be permitted to use its own procedures and processes to protect the confidentiality of a SAR among affiliates that are already subject to a SAR rule.  SIFMA also seeks clarification relating to the disclosure of a SAR to certain regulatory organizations and in the context of arbitration and reparations proceedings.