Volcker relief for foreign public funds

Author: Zoe Thomas | Published: 22 Jun 2015

A clarification to the Volcker Rule will make it easier for banks with US operations to maintain foreign public funds. It came just over a month before the ban on proprietary trading takes effect.

Staff from the five regulatory agencies overseeing Volcker issued frequently asked question (FAQ) 14, addressing how much control a bank can have over a foreign public fund before it becomes subject to Volcker.

The change draws a bright line under what would be considered control for the purposes of these funds. A bank must own, or control the power to vote on 25% or more of the funds securities to be considered a banking entity under the rule.

Sally Miller, CEO of Institute of International Bankers (IIB) said the update was welcomed by the industry, which had asked for clarification on this nearly a year and half ago.

"While I would have liked to have had...



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