EFTA Document EFTA01356555

1. Background (Populate from GFMS) Finding Rating F3 !Significant IS F2 : Important 0 Ft (not GA or SI!) 0 Finding Type GA Finding LI Sit (excl. RTC raised) Z SII (RTC raised) Li Supervisory Authority Finding - trilateral 0 Supervisory Authority Finding - other 0 Obligation 0 Statutory external audit 0 Target Date 2019-04-30 Regulator / Auditor NA. Finding Title MIFID II - Remaining EEA Countries (Excl Germany & UK) GEMS / Finding reference ■ Corporate Division of WM Americas Resolution Finding Owner Sign-off WI ?-, l.ilon Cohen I road Apptoval_4 II 101. Finding Text MIFID II became effective January 3. 2018 and imposes certain requirements on a third country legal entity (non-EEA subsidiary) who services EEA clients. US WM complied with MIFID II for German clients. For remaining EEA countries excluding UK as long as clients are serviced on a reverse solicitation basis no MIFID II requirements need to be implemented. US WM needs to ensure we have reverse solicitation documentary evidence available for retained accounts; an other amounts must be exited. Action Plans Action Plan 2409366: key activities include: I. Confirm catmint account scope - Analysis and confumation of exiMing CEA client nexus (Indcloint: ace; holder(s) or decision maker. Legal Entities: country of primary decision maker(s)). 2. Determine EEA accounts to be retained or exited - Accounts meeting the -retain financials" criteria established by mgnit. were retained. Othensise exiled unless an exception to Main was approved by Val Americas COO. (Main financials criteria: CDV 'Eur2m or Annualized Rev:-Eur206). EVA retain accormts/mnediation - Implement processcontrols to capture reverse solicitation evidence (banker's attestation or EEA client declaration form) and obtain approvals from US compliance & DLit. 4. bi-:A exit accounts Mail exit letters to clients (2 letters) for accounts in scope. Once transfer instructions are obtained from the client proceed with closure a restrict accounts where possible. 5. EF.A exit accounts— exceptions to retain Obtain Nigmt approval for EEA accounts not meeting the financials criteria but with strong Nom...Ns rtional to he retained (e.g. future gro‘sili opportunities) For internal use only Page f or 12 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0042462 CONFIDENTIAL SDNY_GM_00188646 EFTA01356555