On August 20, 2019, two of the agencies responsible for
implementing the Volcker Rule finalized amendments to the Rule that
narrow and simplify the proprietary trading prohibition and
significantly reduce compliance burdens. The Final Rule includes
only limited revisions to the covered fund provisions. The Agencies
deferred to a forthcoming notice of proposed rulemaking all of the
significant, more complicated covered fund issues that had been the
subject of questions in the Agencies' 2018 proposal.
Accounting Prong and Proprietary Trading: The Final Rule adopted
by the FDIC and the OCC resolves the issue of greatest concern to
the banking industry by removing the new accounting prong that the
Agencies proposed last year to replace the purpose test in the
trading account definition.
