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Volcker Rule

The Volcker Rule: Frequently Asked Questions

Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act added a new section 13 to the Bank Holding Company Act of 1956 (“BHC Act”), commonly referred to as the Volcker Rule, that generally prohibits insured depository institutions and any company affiliated with an insured depository institution 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.  These prohibitions are subject to a number of statutory exemptions, restrictions, and definitions.  

The Federal Deposit Insurance Corporation (“FDIC”) is working closely with the other agencies charged with implementing the requirements of section 13, including the Federal Reserve Board (“Board”), the Office of the Comptroller of the Currency, the Securities and Exchange Commission, and the Commodity Futures Trading Commission (each an “Agency” and collectively with the FDIC “the Agencies”).  While these frequently asked questions (“FAQs”) apply to banking entities for which the FDIC has jurisdiction, they have been developed by staffs of the Agencies and substantively identical versions will appear on the public websites of each Agency.

Updated: March 4, 2016

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