The Volcker Rule Proposal: Regulators Propose Restrictions on 'Covered Funds'

In October 2011, the FRB, OCC, FDIC, and SEC issued a Proposed Rule to implement the Volcker Rule provisions of the Dodd-Frank Act, which prohibits proprietary trading by banking entities and restricts those entities from sponsoring, investing in, or having certain relationships with hedge funds and private equity funds.

Following our earlier A Closer Look titled The Volcker Rule Proposal: A focus on proprietary trading, this A Closer Look describes the proposed prohibition on banking entities’ sponsoring, investing in, or having certain relationships with hedge funds or private equity funds.

Of further interest: