Federal Reserve Board Announces Guidelines for Banking Entities Seeking an Extension to Conform Certain “Seeding” Investments in Hedge Funds or Private Equity Funds to Requirements of Volcker Rule

 

On July 24, 2017, the Federal Reserve Board “announced guidelines for banking entities seeking an extension to conform certain ‘seeding’ investments in hedge funds or private equity funds (‘covered funds‘) to the requirements of … the Volcker Rule.” In part, the new guidelines require further detail regarding “the reasons for the extension and an explanation of the entity’s plan to conform the investment to the requirements of” the Volcker Rule. Press Release.