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FOS Blog

08 Jun

Passing of Act 2155 Creates Volcker Rule Exemption

Passing of Act 2155 Creates Volcker Rule Exemption

Prior to the passing of Act 2155 – Economic Growth, Regulatory Relief and Consumer Protection Act on May 22, 2018 all banks were subject to prohibitions on propriety trading.  Proprietary trading is regulated by the Volcker Rule.  All banks were also subject prohibiting relationships with certain investment funds.  In order for banks to be exempt from the Volcker Rule they must have less than $10 billion in assets and their trading assets and trading liabilities must make up less than 5% of their total assets.

Along with the Volcker Rule exemption for banks that qualify, the passing of Act 2155 also alleviates restrictions on all bank entities, regardless of size, for sharing a name with hedge funds and/or private equity funds the bank organizes.

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