Butifldrm Posted December 12, 2013 Report Share Posted December 12, 2013 Joint Press Release Board of Governors of the Federal Reserve SystemCommodity Futures Trading CommissionFederal Deposit Insurance CorporationOffice of the Comptroller of the CurrencySecurities and Exchange Commission For immediate release December 10, 2013 Agencies Issue Final Rules Implementing the Volcker RuleFive federal agencies on Tuesday issued final rules developed jointly to implement section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Volcker Rule"). The final rules prohibit insured depository institutions and companies affiliated with insured depository institutions ("banking entities") from engaging in short-term proprietary trading of certain securities, derivatives, commodity futures and options on these instruments, for their own account. The final rules also impose limits on banking entities' investments in, and other relationships with, hedge funds or private equity funds. Like the Dodd-Frank Act, the final rules provide exemptions for certain activities, including market making, underwriting, hedging, trading in government obligations, insurance company activities, and organizing and offering hedge funds or private equity funds. The final rules also clarify that certain activities are not prohibited, including acting as agent, broker, or custodian. The compliance requirements under the final rules vary based on the size of the banking entity and the scope of activities conducted. Banking entities with significant trading operations will be required to establish a detailed compliance program and their CEOs will be required to attest that the program is reasonably designed to achieve compliance with the final rule. Independent testing and analysis of an institution's compliance program will also be required. The final rules reduce the burden on smaller, less-complex institutions by limiting their compliance and reporting requirements. Additionally, a banking entity that does not engage in covered trading activities will not need to establish a compliance program. The Federal Reserve Board announced on Tuesday that banking organizations covered by section 619 will be required to fully conform their activities and investments by July 21, 2015. Statement by Chairman Ben S. Bernanke Statement by Governor Daniel K. Tarullo Final Rule (PDF) Final Rule - Preamble (7.2 MB PDF) Fact Sheet (PDF) Community Bank Guide (PDF) Media Contacts: Federal Reserve Board Barbara Hagenbaugh 202-452-2955 CFTC Steve Adamske 202-418-5080 FDIC Andrew Gray 202-898-7192 OCC Robert M. Garsson 202-649-6870 SEC Judy Burns 202-551-6050 Board Votes 2013 Banking and Consumer Regulatory Policy Last update: December 10, 2013 http://www.federalreserve.gov/newsevents/press/bcreg/20131210a.htm 1 Link to comment Share on other sites More sharing options...
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