Compliance date for Volcker Rule revisions

The FRB, FDIC, OCC, SEC and the Commodity Futures Trading Commission (CFTC) issued a joint press release on October 8, 2019, announcing that they have finalized revisions to simplify compliance requirements relating to the "Volcker Rule." By statute, the Volcker Rule generally prohibits banking entities from engaging in proprietary trading or investing in or sponsoring hedge funds or private equity funds. Under the revised rule, firms that do not have significant trading activities will have simplified and streamlined compliance requirements, while firms with significant trading activity will have more stringent compliance requirements. Community banks generally are exempt from the Volcker rule by statute. The rules will be effective on January 1, 2020, with a compliance date of January 1, 2021.