On February 9, the Fed approved a final rule, as required by the Dodd-Frank Act, implementing the conformance period during which banking entities and nonbank financial companies supervised by the Fed must bring their activities and investments into compliance with the Volcker Rule. The final rule will become effective on April 1. Fed Release. Final Rule.
Volcker Rule
FSOC Volcker Rule Study
On January 18, the Financial Stability Oversight Council issued a study required by the Dodd-Frank Act entitled, “Study & Recommendations on Prohibitions on Proprietary Trading & Certain Relationships with Hedge Funds & Private Equity Funds”. The study recommends, among other things, that rulemaking agencies consider providing exceptions for certain funds that are within the Volcker Rule’s broad definition of “hedge fund” and “private equity fund”. FSOC Study.
Implementation of Volcker Rule
On November 17, the Fed issued a proposed rule which would implement the conformance period (generally two years) during which banking entities and nonbank financial companies under the Fed’s supervision must comply with the Volcker Rule imposed by the Dodd-Frank Act. Comments on the proposed rule must be submitted within 45 days after publication in the Federal Register. Fed Release. Proposed Rule.