Fed Rolls Out Proposed Changes to Volcker Rule
"The agencies responsible for implementing the rule see many opportunities to simplify it and improve it in ways that will allow firms to conduct appropriate activities without undue burden and without sacrificing safety and soundness," Federal Reserve Chairman Jerome H. Powell said. "The proposal will address some of the uncertainty and complexity that now make it difficult for firms to know how best to comply, and for supervisors to know that they are in compliance."
The proposal would also eliminate enhanced minimum standards for compliance programs of banking entities engaged in significant trading activities, though the current rule that requires the CEO's attestation about the compliance programs would still apply.
The proposal also intends to streamline the metrics reporting and recordkeeping requirements by tailoring the requirements based on a banking entity’s size and level of trading activity, completely eliminating particular metrics based on experience working with the data, and adding a limited set of new metrics. The proposal also would provide certain firms with additional time to report metrics to banking regulators beyond the initial deadline.
The proposal also intends to streamline the metrics reporting and recordkeeping requirements by tailoring the requirements based on a banking entity’s size and level of trading activity, completely eliminating particular metrics based on experience working with the data, and adding a limited set of new metrics. The proposal also would provide certain firms with additional time to report metrics to banking regulators beyond the initial deadline.
Comments will be accepted for 60 days after the proposal's publication in the Federal Register.