OCC Opens The Debate On Volcker Rule Reform

On Aug. 1, 2017, the Office of the Comptroller of the Currency issued an advance notice of proposed rulemaking (ANPR) that represents the first concrete step toward reform of the regulations that implement the "Volcker Rule," one of the most controversial provisions of the 2010 Dodd-Frank Act. The ANPR is a short document, but its brevity belies its significance. The ANPR does not merely request comments on the rules themselves, but solicits suggestions for "improvements in the ways in which the final rule has been applied and administered to date."¹ Thus, the comptroller appears to recognize difficulties in the practical application of the regulations to real-life situations, including enforcement and examination practices. Prior efforts to clarify Volcker Rule obligations have come in the form of answers to frequently asked questions.² However, the FAQs left many important questions unresolved and, at times, raised more questions than they answered.