Volcker Rule Implementation
On December 10, 2013, the Office of the Comptroller of the Currency ("OCC"), the Board of Governors of the Federal Reserve System ("Board"), the Federal Deposit Insurance Corporation, the U.S. Securities and Exchange Commission, and the U.S. Commodity Futures Trading Commission issued final regulations to implement section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, known as the Volcker Rule. The final regulations were published in the Federal Register on January 31, 2014, and became effective on April 1, 2014.
National banks (other than certain limited-purpose trust banks), federal savings associations, and federal branches and agencies of foreign banks (collectively banks) were generally required to conform their activities and investments to the requirements of the final regulations by July 21, 2015.
The final rule prohibits banks from engaging in short-term proprietary trading of certain securities, derivatives, commodity futures and options on these instruments, for their own account. The final rule also imposes limits on banks' investments in, and other relationships with, hedge funds or private equity funds. The final rule provides exemptions for certain activities, including market making, underwriting, hedging, trading in government obligations, insurance company activities, and organizing and offering hedge funds or private equity funds. The final rule also clarifies that certain activities are not prohibited, including acting as agent, broker, or custodian.
The OCC is posting below information that may be helpful for banks for purposes of Volcker Rule compliance:
- 2020 Interagency Quantitative Measurements Guidance
- 2020 Final Rule Simplifying and Tailoring the Volcker Rule "Covered Funds" Provisions
- Notice of Proposed Rulemaking to Simplify and Tailor the Volcker Rule "Covered Funds" Provisions
- 2019 Final Rule Simplifying and Tailoring the Volcker Rule
- 2019 Final Rule Implementing the Economic Growth, Regulatory Relief, and Consumer Protection Act
- Notice of Proposed Rulemaking Implementing the Economic Growth, Regulatory Relief, and Consumer Protection Act
- Request for Comment on Proposal to Simplify and Tailor the Volcker Rule
- Notice Seeking Public Input on the Volcker Rule
- FAQs (as of March 4, 2016)
- 2013 Final Rule and Related Documents
- Order Extending Conformance Period for Legacy Covered Funds Until 2017
- Order Extending Conformance Period for Legacy Covered Funds
- Final Rule and Preamble (PDF)
- NR 2013-186, Agencies Issue Final Rules Implementing the Volcker Rule
- Volcker Rule Community Bank Summary (PDF)
- Fact Sheet: Final Rules to Implement the Volcker Rule (PDF)
- OCC Bulletin OCC 2014-9, Volcker Rule: Final Regulations
- OCC Bulletin OCC 2014-27, Volcker Rule: Interim Examination Procedures
- TruPS CDOs