Federal Reserve Issues Proposed Rule on Volcker Rule Transition Period

On November 26, the Federal Reserve Board published a proposed rule setting forth a timeframe for compliance with the "Volcker Rule" provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The proposed rule would, by default, allow two years from the Volcker Rule's effective date for compliance, and allow extensions of such time under certain circumstances, discussed below. Comments on the proposal must be submitted by January 10, 2011. Dodd-Frank directs the Federal Reserve to issue final rules on the transition period by January 21, 2011.

The proposal is available at:

http://edocket.access.gpo.gov/2010/pdf/2010-29277.pdf

What the Volcker Rule does