Considerations for a Volcker Rule "Private Funds" Strategy

18 June 2014
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Key takeaways

  • In December 2013, the federal financial regulators adopted final regulations implementing the Volcker Rule.
  • In connection with the final regulations implementing the Volcker Rule, the Federal Reserve Board exercised its statutory authority to extend the two-year conformance period by one year, to July 21, 2015.
  • To request the first of two available one-year extensions of the conformance period, a banking entity must submit an written request to the Federal Reserve Board by January 2015.
  • This regulatory briefing paper, co-authored by Debevoise & Plimpton and Cogent Partners, discusses the legal standard applicable to extension requests, as well as considerations that a banking entity may want to take into account when exploring a secondary sale of fund interests, if that is an option the banking entity is considering.
  • This paper also discusses a number of early data gathering and organizational steps that need to be taken as soon as possible after a banking entity has made the decision to pursue a secondary sale.