Volcker Rule 2.0: A Detailed Summary of Final Rule, Round 2 on Covered Funds

30 June 2020
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Key takeaways:
  • On June 25, the Federal Reserve Board and the other implementing agencies adopted revisions to the Volcker Rule’s covered funds provisions.
  • The revisions exclude certain types of funds from the scope of the Volcker Rule, including credit funds, venture capital funds, client facilitation vehicles and family wealth management vehicles.
  • The revisions also limit the extraterritorial impact of the Volcker Rule on certain foreign funds by codifying the treatment of so-called qualifying foreign excluded funds, and include other revisions to generally streamline compliance and to allow banking entities to engage in activities that the implementing agencies have determined do not raise concerns that the Volcker Rule was intended to address.