Regulatory Alerts2020-07-31 | 2020-15525Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds
The OCC, Federal Reserve, FDIC, SEC, and CFTC have issued a final rule amending regulations implementing Section 13 of the Bank Holding Company Act to streamline proprietary trading restrictions and covered fund requirements. The rule introduces new exclusions for qualifying foreign funds, credit funds, venture capital funds, family wealth vehicles, and customer facilitation vehicles while clarifying ownership interest calculations and permissible relationships. These amendments reduce extraterritorial compliance burdens, enhance banking entities' ability to extend credit and provide financial services, and maintain the core risk-mitigating objectives of the Volcker Rule.
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