Joint Release/Financial Regulators Modify Volcker Rule — 2020-06-25

Board of Governors of the Federal Reserve System Commodity Futures Trading Commission Joint Release Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Securities and Exchange Commission Financial Regulators Modify Volcker Rule Five federal regulatory agencies today finalized a rule modifying the Volcker rule’s prohibition on banking entities investing in or sponsoring hedge funds or private equity funds—known as covered funds. The final rule is broadly similar to the proposed rule from January. The Volcker rule generally prohibits banking entities from engaging in proprietary trading and from acquiring or retaining ownership interests in, sponsoring, or having certain relationships with a hedge fund or private equity fund.