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The Volker Rule 2.1 Final rule implementing amendments to the Volcker rule

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30 July 2020

On 25 June 2020, the easing of restrictions in the Volcker Rule, formulated as part of the 2010 Dodd-Frank Act, will permit banks to invest in certain covered funds. 

This means that banks will be allowed to engage with various types of private funds via the “2020 Final Covered Funds Rule”, which modifies and simplifies the requirements regarding covered fund provisions in the existing Volcker Rule.

Financial market participants should now have greater clarity when it comes to compliance with the Volcker Rule and banks will have greater flexibility to sponsor covered funds. These reforms will also allow banks to engage in lending activities through debt funds, amongst other proposals which have been adopted. To learn what these changes mean for your organisation, click the button to download the PDF.