Volcker Rule

Objectives

On completion of this tutorial, you will be able to:

• Define the Volcker Rule’s prohibition on proprietary trading and list its limitations and exclusions

• Define the Volcker Rule’s prohibition on covered fund ownership and sponsorship and name its limitations and exclusions

• Recall the compliance requirements of the Volcker Rule and their application to different types of institutions

Tutorial Overview

Born of the global financial crisis, the Volcker Rule places limits on banks’ ability to engage in proprietary trading and to invest in and sponsor private equity and hedge funds. However, since the Rule was first written in 2013, it has undergone several changes and evolutions. Today, the Volcker Rule has a range of complex implications for banks and many nonbank financial companies. This tutorial provides a high-level overview of the Volcker Rule and its applications to different types of financial institutions.

Prerequisite Knowledge

None

Tutorial Level

Introductory

Tutorial Duration

50 minutes