Client can be classified under US legislation as Conduit Affiliates. This classification will determine the applicability of certain rules. Factors relevant to determine classification include: (i) the non-US person is a majority-affiliate of a US person; (ii) the non-US person is controlling, controlled by or under common control with the US person; (iii)the financial results of the non-US person are included in the consolidated financial statements of the US person (iv) the non-US person, in the regular course of business, engages in swaps with non-US third party(ies) for the purpose of hedging or mitigating risks faced by, or to take positions on behalf of its US affiliate(s), and enters into offsetting swaps or other arrangements with its US affiliate(s) in order to transfer the risks and benefits of such swaps with third-party(ies) to its US affiliates; (v) Conduit Affiliate does not include affiliates of Swap dealers.
