Friday, December 23, 2011

SEC and Banking Regulators Extend Comment Period on Proposed Regulations Implementing Volcker Rule

The SEC and federal banking regulators have extended the comment period on the proposed regulations implementing the Volcker Rule provisions of the Dodd-Frank Act from January 13, 2012 to February 13, 2012. The comment period was extended as part of a coordinated interagency effort to allow interested persons more time to analyze the issues and prepare their comments. The Dodd-Frank Act requires the regulators to implement prohibitions and restrictions on the ability of bank and non-bank financial companies to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund.

In Release No. 34-66057, the SEC noted that the extension of the comment period is appropriate due to the complexity of the issues involved and the variety of considerations involved in its impact and implementation. The Agencies believe that the additional period for comment will facilitate public comment on the provisions of the proposed rule and the questions posed by the proposal.

The Agencies have received a number of requests for an extension of the comment period to allow for additional time for comments related to the provisions of the proposed rule. The SEC Release cites comment letters from the Center for Capital Markets Competitiveness of the U.S. Chamber of Commerce (November 17, 2011); American Bankers Association et al. (November 30, 2011); and House Members led by Oversight Subcommittee Chair Randy Neugebauer (R-TX) (December 20, 2011).