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SEC Rule 15Fh-1

Permits security-based swap dealers and major security-based swap participants to rely on written representations from counterparties to satisfy due diligence requirements.

Rule Overview

Jurisdiction: United States

Regulator: SEC

Topic: Due diligence

eCFR Title 17 Chapter II Part 240 Subpart A
Overview

The written representations can be relied on unless the firm has infomation that would cause a reasonable person to questions its accuracy.

This section also limits certain provisions of rules 15Fh-3 and 15Fh-4 and carves their requirements out so that they do not apply to security-based swaps entered into with majority-owned affiliates, where one counterparty has a majority interest in the other or a third party has a majority interest in both counterparties.