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Daniel P. Stipano Quoted in Article, “Covered Funds Seen as Starting Point for Volcker Rule Reform”

Daniel P. Stipano

Daniel P. Stipano was quoted on August 22, 2017 in a article, “Covered Funds Seen as Starting Point for Volcker Rule Reform,” which discussed reform of the Volcker rule’s covered fund definition. Currently, the rule refers to a covered fund as anything that is not considered an investment company, which mainly consist of hedge funds and private equity firms, but there are other exceptions that should be included. The article added, “The OCC co-ordinated with the four other federal financial regulatory agencies – the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) – to grant a one-year no-action relief on certain foreign funds that are meant to be excluded from the definition of covered fund. This apparent inter-agency consensus on the need to re-examine the covered funds definition is important, because acting OCC chairman Keith Noreika is the only appointee of the new US administration who already holds a post at one of the three prudential regulators.

Stipano added, “Eventually, you will have Trump-appointed heads at the FDIC and the Federal Reserve, and there will be a whole different team. And when you have that, it’ll be easier to change the rule. But right now we are in the middle of a transition.”

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