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Home > News & Events > Press Releases

Joint Press Release
April 19, 2012

Agencies clarify Volcker Rule conformance
period
Board of Governors of the Federal Reserve System
Commodity Futures Trading Commission
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Securities and Exchange Commission
For immediate release
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The Federal Reserve Board on Thursday announced its approval of a
statement clarifying that an entity covered by section 619 of the DoddFrank Wall Street Reform and Consumer Protection Act, or the so-called
Volcker Rule, has the full two-year period provided by the statute to fully
conform its activities and investments, unless the Board extends the
conformance period. Section 619 generally requires banking entities to
conform their activities and investments to the prohibitions and
restrictions included in the statute on proprietary trading activities and on
hedge fund and private equity fund activities and investments.
Section 619 required the Board to adopt rules governing the
conformance periods for activities and investments restricted by that
section, which the Board did on February 9, 2011. Subsequently, the
Board received a number of requests for clarification of the manner in
which this conformance period would apply and how the prohibitions will
be enforced. The Board is issuing this statement to address this
question.

The Board’s conformance rule provides entities covered by section 619
of the Dodd-Frank Act a period of two years after the statutory effective
date, which would be until July 21, 2014, to fully conform their activities
and investments to the requirements of section 619 of the Dodd-Frank
Act and any implementing rules adopted in final under that section,
unless that period is extended by the Board.
The Board, the Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the Securities and Exchange
Commission, and the Commodity Futures Trading Commission (the
agencies) plan to administer their oversight of banking entities under
their respective jurisdictions in accordance with the Board’s
conformance rule and the attached statement. The agencies have
invited public comment on a proposal to implement the Volcker rule, but
have not adopted a final rule.
The statement is included in the attached Federal Register notice,
publication of which is expected shortly.
Federal Register notice: TEXT | PDF
Board Voting Record
Media Contacts:
Federal Reserve
Board

Barbara
Hagenbaugh

CFTC

David Gary

FDIC

David Barr

OCC

Bryan Hubbard

SEC

John Nester

202-4522955
202-4185085
202-8986992
202-8745770
202-5514120

Last Update: April 19, 2012

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