Section 47.8 - Exclusion of certain QFCs(a)Exclusion of QFCs with FMUs. Notwithstanding § 47.3 , a covered bank is not required to conform to the requirements of this part a covered QFC to which:(2) Each party (other than the covered bank) is an FMU.(b)Exclusion of certain covered entity and covered FSI QFCs. If a covered QFC is also a covered QFC under part 382 or 252, subpart I, of this title that an affiliate of the covered bank is also required to conform pursuant to part 382 or 252, subpart I, of this title and the covered bank is:(1) The affiliate credit enhancement provider with respect to the covered QFC, then the covered bank is required to conform the credit enhancement to the requirements of this part but is not required to conform the direct QFC to the requirements of this part; or(2) The direct party to which the excluded bank is the affiliate credit enhancement provider, then the covered bank is required to conform the direct QFC to the requirements of this part but is not required to conform the credit enhancement to the requirements of this part.(c)Exclusion of certain contracts. Notwithstanding § 47.3 , a covered bank is not required to conform the following types of contracts or agreements to the requirements of this part:(1) An investment advisory contract that:(i) Is with a retail customer or counterparty;(ii) Does not explicitly restrict the transfer of the contract (or any QFC entered into pursuant thereto or governed thereby, or any interest or obligation in or under, or any property securing, any such QFC or the contract) from the covered bank except as necessary to comply with section 205(a)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-5(a)(2) ) ; and(iii) Does not explicitly provide a default right with respect to the contract or any QFC entered pursuant thereto or governed thereby.(2) A warrant that:(i) Evidences a right to subscribe to or otherwise acquire a security of the covered bank or an affiliate of the covered bank; and(ii) Was issued prior to January 1, 2018.(d)Exemption by order. The OCC may exempt by order one or more covered banks from conforming one or more contracts or types of contracts to one or more of the requirements of this part after considering:(1) The potential impact of the exemption on the ability of the covered bank, or affiliates of the covered bank, to be resolved in a rapid and orderly manner in the event of the financial distress or failure of the entity that is required to submit a resolution plan;(2) The burden the exemption would relieve; and(3) Any other factor the OCC deems relevant.