The amended rule includes modifications to existing exclusions and creates new exclusions for the activities and investments of certain issuers.

By Alan W. Avery and Pia Naib

The US federal regulatory agencies responsible for implementing the Volcker Rule recently issued a rule (Final Rule) to finalize proposed modifications to certain restrictions related to “covered funds” that were adopted in 2013 (2013 Rule). The issuance of the Final Rule, whose effective date is October 1, 2020, followed an extended comment period after the release of a proposed rulemaking in February 2020 by the federal regulatory agencies, which comprise: the Board of Governors of the Federal Reserve System (Federal Reserve), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Securities and Exchange Commission, and the Commodity Futures Trading Commission.

The Final Rule amends various aspects of the 2013 Rule’s covered fund-related restrictions. This Client Alert summarizes the more noteworthy revisions.