The CFTC, the Federal Reserve’s Board of Governors, the FDIC Office of the Comptroller of the Currency, and the SEC issued a joint release to announce approval of a statement clarifying the Volcker Rule. The release specified that the Rule has a two-year period provided by the statute to conform to its activities and investments. The Federal Reserve Board has the option to extend the conformance period.
Under Section 619 of the Dodd-Frank Act, general banking entities are required to conform their activities and investments to restrictions specified in the statute. The Federal Reserve Board did conform on February 9 2011, after which time the Board received requests for clarification.
Under the conformance rule, entities have until July 21, 2014 to conform their activities and investments to the conform their investments and activities to the Dodd-Frank Act and any adopted and finalized rule. The regulating entities will supervise according to the conformance rule.
