Final Rule: Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds
RIN: 1557-AD44, 3064-AD85, 3235-AL07, and 7100 AD82
Agency/Agencies: SEC, OCC, FDIC, Fed
Federal Register Publication Date: 01/31/2012
Summary: The OCC, Fed (Board of Governors of the Federal Reserve System), FDIC, and SEC adopted a rule that would implement Section 13 of the Bank Holding Company Act of 1956 (“BHC Act”), which was added to the BHC Act by Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 13 contains certain prohibitions and restrictions on the ability of a banking entity and nonbank financial company supervised by theto engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund.