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Volcker Rule simplified
The FRB, FDIC, OCC, SEC and the Commodity Futures Trading Commission (CFTC) issued a joint press release yesterday announcing that they have finalized revisions to simplify compliance requirements relating to the "Volcker Rule." By statute, the Volcker Rule generally prohibits banking entities from engaging in proprietary trading or investing in or sponsoring hedge funds or private equity funds. Under the revised rule, firms that do not have significant trading activities will have simplified and streamlined compliance requirements, while firms with significant trading activity will have more stringent compliance requirements. Community banks generally are exempt from the Volcker rule by statute. The rules will be effective on January 1, 2020, with a compliance date of January 1, 2021.
UPDATE: Published 11/14/2019 at 84 FR 61974 with effective dates of 1/1/2020, 1/13/2020, and certain transitional provisions effective from 1//1/2020 through 12/31/2020 or 1/13/2020 through 12/31/2020. Banking entities must comply with the final amendments by January 1, 2021. Until the compliance date, banking entities must continue to comply with the 2013 rule (as set forth in appendices Z to 12 CFR parts 44, 248, and 351 and 17 CFR parts 75 and 255). Alternatively, a banking entity may voluntarily comply, in whole or in part, with the amendments adopted in this release prior to the compliance date, subject to the agencies' completion of necessary technological changes.