Agencies again defer action against foreign funds under Volcker Rule

Agency Rule-Making & Guidance Volcker Rule FDIC Bank Compliance Of Interest to Non-US Persons Federal Reserve SEC CFTC

On July 17, the FDIC, the Federal Reserve Board, and the OCC (collectively, the “agencies”) announced that they will not take action against foreign banks for qualifying foreign excluded funds, subject to certain conditions, under the Volcker Rule for an additional two years. The announcement notes that the agencies consulted with the SEC and the CFTC on the decision. Since 2017, the agencies have deferred action on qualifying foreign funds that might be covered under the Volcker Rule (covered by InfoBytes here and here). In a joint statement, the agencies note that they have not finalized revisions to regulations implementing Section 13 of the Bank Holding Company Act, and in order to “provide interested parties greater certainty about the treatment of qualifying foreign excluded funds in the near term,” the agencies are proposing not to take action through July 21, 2021.