Press Release
June 25, 2020
Financial regulators modify Volcker rule
Board of Governors of the Federal Reserve System
Commodity Futures Trading Commission
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Securities and Exchange Commission
For release at 12:00 p.m. EDT
Share
Five federal regulatory agencies today finalized a rule modifying the Volcker rule's prohibition on banking entities investing in or sponsoring hedge funds or private equity fundsâknown as covered funds. The final rule is broadly similar to the proposed rule from January.
The Volcker rule generally prohibits banking entities from engaging in proprietary trading and from acquiring or retaining ownership interests in, sponsoring, or having certain relationships with a hedge fund or private equity fund.
Like the proposal, the final rule modifies three areas of the rule by:
Streamlining the covered funds portion of rule;
Addressing the extraterritorial treatment of certain foreign funds; and
Permitting banking entities to offer financial services and engage in other activities that do not raise concerns that the Volcker rule was intended to address.
The rule will be effective on October 1.
Federal Register notice: Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds
Board Memo: Final Rule Amending the Covered Fund Provisions of the Boardâs Volcker Rule Regulations (PDF)
Statement by Vice Chair for Supervision Quarles
Statement by Governor Brainard
Media Contacts:
Related Content
Board Votes
Cite this document
Federal Reserve (2020, June 24). Press Release. Press Releases, Federal Reserve. https://whenthefedspeaks.com/doc/press_release_20200625_agencies_finalize_amendments_to_swap_margin_rule
@misc{wtfs_press_release_20200625_agencies_finalize_amendments_to_swap_margin_rule,
author = {Federal Reserve},
title = {Press Release},
year = {2020},
month = {Jun},
howpublished = {Press Releases, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/press_release_20200625_agencies_finalize_amendments_to_swap_margin_rule},
note = {Retrieved via When the Fed Speaks corpus}
}