The Office of the Comptroller of the Currency is seeking public comment on possible revisions to the Volcker Rule.
The OCC announced Aug. 2 it is seeking public input on whether certain aspects of the implementing regulation should be revised to better accomplish the rule’s goals while reducing the compliance burden on banks. Specifically, the agency is seeking input on ways to clarify key provisions that define prohibited and permissible activities. It also is seeking input on how federal regulatory agencies could implement the existing rule more effectively.
The Volker Rule, named after former Federal Reserve Chairman Paul Volcker, refers to section 619 of the Dodd-Frank Wall Street and Consumer Protection Act of 2010. The regulation was put in place after the Great Recession and was designed to curb risky trading or investment practices by banks. However, the rule has come under criticism from the financial services industry, which claims it has created complex and confusing compliance challenges for banks.
“This is one piece of a larger interagency effort to improve the rule,” Acting Comptroller of the Currency Keith Noreika said in an OCC news release. “A bipartisan consensus has emerged that the Volcker Rule needs clarification and recalibration to eliminate burden on banks that do not engage in covered activities and do not present systemic risks. Regulators do not have a monopoly on good ideas. Public input will help inform our path forward with the views, concerns, and data of those affected by this rule and provides for a more inclusive and transparent process.”
Rob Nichols, president and CEO of the American Bankers Association, said in an Aug. 2 statement that the ABA welcomes the OCC’s request for comments on ways to improve the Volcker rule.
“At the end of the day, we will seek an implementation program that is clear and promotes financial stability and economic growth,” Nichols said in the statement. “We appreciate that the OCC statement references several of ABA’s past comments regarding the Volker Rule, and we intend to be active participants in the public reform discussion.”
Comments are due within 45 days of publication in the Federal Register. To view the Federal Register notice, click here.