KPM Financial maintains the appropriate policies and procedures to act as a Qualified Independent Representative (QIR).
After the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) was signed into law in 2010, many things changed for banks offering swaps as well as end users of swaps. Banks are now required to collect extensive information on you and will require myriad certifications and acknowledgements. Generally speaking, they require you to certify that you are exempt from the need to clear swaps through an exchange and that you are capable of assessing the risks involved in the use of swaps. These documents can be complex and difficult for the average end-user to navigate.
Qualified Independent Representative (QIR)
Any swap dealer or major swap participant that offers to enter into a swap with a Special Entity must have a reasonable basis to believe that the Special Entity has a QIR that:
Has sufficient knowledge to evaluate the transaction and risks;
Is not subject to a statutory disqualification;
Is independent of the swap dealer or major swap participant;
Undertakes a duty to act in the best interests of the Special Entity it represents;
Makes timely and appropriate disclosures to the Special Entity;
Evaluates fair pricing and the appropriateness of the transaction;
The QIR will be deemed to be “independent” if:
The QIR is not and, within one year of representing the Special Entity in connection with the swap, was not an “associated person” of the swap dealer or major swap participant;
The QIR is not directly or indirectly, controlled by, in control of, or under common control with the swap dealer or major swap participant; and
There is no principal relationship between the QIR and the swap dealer or major swap participant;
No members of KPM are deemed associated persons of any swap dealer or major swap participant and no prior members of KPM work at swap dealers or major swap participants. We are fully independent regardless of the potential swap provider.
KPM is a registered municipal advisor with both the SEC and MSRB. KPM is able to assist you in completing ever evolving Dodd-Frank compliance documents such as US Resolution Stay Protocols, Dodd-Frank Protocols 1.0 and 2.0, Initial Margin Segregation Rights Notices and Municipal Advisory Disclosures (“IRMA Disclosures”).