US: Newly Adopted Volcker Rule Amendments Expand Opportunities for Banks to Sponsor and Invest in Private Credit Funds (July 2020)
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On June 25, 2020, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Commodity Futures Trading Commission issued a final rule adopting several amendments to the regulations implementing Section 13 of the Bank Holding Company Act of 1956, commonly known as the "Volcker Rule." Among the modifications to the Volcker Rule regulations included in the Final Rule was the exclusion of privately offered credit funds from the definition of "covered fund" for purposes of the Volcker Rule's restrictions on a banking entity's interests and relationships with covered funds. The Final Rule will become effective on October 1, 2020.
