Volcker Rule 

Named after former Federal Reserve Chairman Paul Volcker, the Volcker Rule is Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Volcker Rule

Implementation of the Volcker Rule (PDF 180 KB)

Implementation of the Volcker Rule
(PDF 180 KB)

The Volcker Rule, effective April 1, 2014, requires banking entities to establish an internal compliance program to help ensure and monitor compliance with the prohibitions and restrictions of the statute.

EU proposes structural separation and a ban on proprietary trading

European Commission’s proposed regulation for improving the resilience of EU banks follows Belgium, France, Germany, the UK and Volcker in the US.

Implementation of the Volcker Rule is likely to prove to be one of the most complex and controversial regulatory regimes ever to be introduced into the financial services industry. Firms will need to make significant investments in technology and infrastructure in order to comply with its intensive monitoring and reporting requirements. The compliance program will likely require a heavy infrastructure investment for most firms, and institutions will need to evaluate how they want to organize their trading desks, trading accounts, and hedging activities under the Volcker Rule.

We believe the full impact of the Rule on both institutions and the financial markets will take time to unfold. Banking entities should anticipate that this will likely not be the only unintended effect from the Volcker Rule. KPMG will continue to assess the impact of the Volcker Rule so that we can assist financial institutions to better understand the full scope of this new regulation, its potential impact on their businesses and what measures will need to be implemented to comply.

Please take a look at the PDF to the left for more information and contact us if you have any questions.

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