On January 30, 2020, five federal financial regulators jointly issued a proposed rule that would modify existing regulations implementing the Volcker Rule’s general prohibition on banking entities investing in, sponsoring, or having certain relationships with hedge funds or private equity funds (collectively, “covered funds”).  The proposal, which follows a 2019 final rule revising the Volcker Rule’s proprietary trading provisions, is intended to simplify the covered fund provisions, and permit banking entities to engage in additional fund-related activities that do not present the risks that the Volcker Rule was intended to address.

Click here to read our Seven Things to Know about the Volcker Rule “covered funds” proposal.