Regulatory Rollback: First Set Of Volcker Rule Reforms Finalized

On July 9, 2019, the five federal financial regulatory agencies issued a final rule (the “Rule”) to, inter alia, revise the Volcker Rule’s name-sharing restrictions applicable to bank-affiliated hedge funds and private equity funds and exclude certain community banks from the Volcker Rule.¹ The Rule is consistent with the statutory amendments made pursuant to sections of the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA”) and finalizes the changes as proposed in EGRRCPA in order to conform the regulations to the statutory revisions.²

While the Rule will have a limited effect on the banking industry, other proposed revisions to the Volcker Rule regulations remain pending and, if adopted, would have a more significant impact on large banking institutions.