This is probably addressed more in manufacturers installation than building code, but what do you think of the clearance (or lack of) from the direct vent to the eaves? The sooting is a different issue that needs to be addressed.
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Fritz, without seeing the listed instructions, I would have to say I would not be surprised if this met the listing. As long as there is free air flow through there, the heat should dissipate quickly. I would like to see what that termination looks like in the manual. That top deflector looks bent down, which may account for the sooting.
Sorry not much more help,
bob

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I thought it was bent upward, but maybe not, should it be up at an angle? The glass window was also heavily sooted. I was thinking improper combustion of some sort. You think improper drafting?

I don't know exactly because I'm not intimately familiar with this termination. That's why I deferred to the listed instructions. If the termination is not damaged or tampered with, then you are still looking at factors within the fireplace itself for the sooting. What is causing the sooting could be an all day class in and of itself so suffice it to say this fireplace needs service by a qualified technician.

As for the soot patterns on the exterior, you can have a proper installation that still causes soot deposition, melting siding, etc. In that case, I recommend you still call it out because obviously it is still having problems. Listings are not bullet proof. They represent a set of proven performance values that somebody in authority has accepted that under most generally anticipated conditions, will perform acceptably. Not Superman's cape.
Bob

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Fritz

Most installation manuals that I have seen call for a vertical clearance to a unventilated soffit of 12 in. (30 cm) minimum. For a ventilated soffit it would be 18 in. (46 cm) minimum. See figure 6.2 and 6.5 in following example:

http://content.hearthnhome.com/downl...s/4058_210.pdf

Thanks Jeff, probably OK on the clearance then. I think Bob is right, that upper metal flap or diverter has been bent down over the opening. Probably trying to keep birds out or something.