Volcker Rule 2.0: A Detailed Summary of Final Rule Round 1

16 September 2019
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Key takeaways:
  • On Tuesday, August 20, 2019, the Federal Deposit Insurance Corporation and the Comptroller of the Currency approved revisions (the “2019 Final Rule”) to the regulations implementing section 13 of the Bank Holding Company Act, commonly referred to as the “Volcker Rule.” The Board of Governors of the Federal Reserve System, Securities and Exchange Commission and Commodity Futures Trading Commission also are expected to approve the revisions.
  • The 2019 Final Rule appears to address many of the concerns raised by commenters, including by expanding exclusions to and exemptions from the proprietary trading prohibition, removing the proposed “accounting prong” and streamlining metrics reporting requirements. The 2019 Final Rule also substantially tailors the compliance program requirements based on the size of an institution’s trading operations, which builds on relief recently granted pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act.
  • The agencies also adopted without change certain revisions to the covered funds provisions contemplated by the 2018 proposal, although the bulk of the issues pertaining to covered funds will be the subject of a future proposed rulemaking.