On April 2, the five regulators responsible for Section 13 of the Bank Holding Company Act of 1956 (the Volcker Rule) issued a joint release (Joint Release) announcing that they will consider comments submitted before May 1 in connection with their proposal to modify the Volcker Rule’s general prohibition on banking entities investing in or sponsoring hedge funds or private equity funds. The original comment period was set to expire on April 1. (For a discussion of this proposal, please refer to the January 31, 2020 edition of Corporate and Financial Weekly Digest.)
This extension is intended to provide interested persons more time to analyze the issues related to the proposal and prepare their comments in light of potential disruptions resulting from the COVID-19 pandemic.
The text of the Joint Release is available here.