Fed Formalizes 2017 Extension for Volcker Fund Conformance

The Federal Reserve today formalized the compliance period for the Volcker Rule’s prohibition on ownership interests in legacy covered funds. Under the now-formal order — previously announced in 2014 — banks have until July 21, 2017, to divest interests in prohibited funds, provided they were in place by the end of 2013. The Fed also said it would issue information on how it will address a banking entity’s application for an additional conformance period for investments in “illiquid covered funds.” For more information, contact ABA’s Tim Keehan.