The Volcker Rule generally restricts banking entities from engaging in proprietary trading and from owning, sponsoring, or having certain relationships with a hedge fund or private equity fund. A bank that does not have (and is not controlled by a company that has) more than $10 billion in total consolidated assets and does not have (and is not controlled by a company that has) total trading assets and liabilities of 5 percent or more of total consolidated assets is excluded from the Volcker Rule.
Laws and Regulations
Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.
Part 351 — Proprietary Trading and Certain Interests In
and Relationships With Covered Funds
implements Section 13 of the Bank Holding Company Act, also known as the Volcker Rule, which addresses prohibitions and restrictions on proprietary trading and investment in, or relationships with, covered funds
Relevant Federal Register Notices incorporated into Part 351 that describe the basis and purpose of the rule and its revisions
Frequently asked questions, advisories, statements of policy, and
other information issued by the FDIC alone, or on an interagency
basis, provided to promote safe-and-sound operations.
Fact Sheet: Final Rule Amendments to the Volcker Rule
addresses the proprietary trading provisions and compliance program requirements with thresholds using a three-tiered approach to tailor program requirements
Federal Bank Regulatory Agencies Announce Coordination of
Reviews for Certain Foreign Funds Under Volcker Rule
provides notice that the agencies will not take action related to Volcker Rule restrictions on certain foreign funds for an additional two-year period ending July 21, 2021
Supervisory Guidance on the Capital Treatment of Certain Investments in Covered Funds
clarifies interaction between the Regulatory Capital Rule and the Volcker Rule for appropriate capital treatment for investments in certain private equity funds and hedge funds (covered funds)
Frequently Asked Questions (FAQs) address various aspects of the Volcker Rule - Refer to the
single document with all FAQs (chronological order):
Supplemental information and guidance related to safe and sound banking operations
Section 620 of the Dodd-Frank Wall Street Reform and Consumer Protection Act Report
on types of activities and investments permissible for banking entities, the associated risks, and how banking entities mitigate those risks
Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act Report
on Prohibitions on Proprietary Trading and Certain Relationships with Hedge Funds and Private Equity Funds