Agencies Finalize Volcker Rule Simplification

Oct 09, 2019
Federal regulators approved a final rule to simplify the Volcker Rule, which generally prohibits banking entities from engaging in proprietary trading and from owning or controlling hedge funds or private equity funds. Among its provisions, the final rule tailors compliance requirements based on the size of a firm's trading assets and liabilities.
The rule follows a final rule issued in July implementing an ICBA-advocated provision of the S. 2155 regulatory relief law exempting most community banks from the Volcker Rule. That final rule conforms with statutory language exempting community banks that have less than $10 billion in assets and trading assets and liabilities that are no more than 5 percent of total assets.