The proposed modifications, if adopted, would amend the Volcker Rule in a manner consistent with the statutory amendments under the Economic Growth, Regulatory Relief, and Consumer Protection Act.

The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), which was enacted on May 24, 2018, modified certain post-financial crisis regulatory requirements, including Section 13 of the Bank Holding Company Act of 1956, as amended, and its implementing regulations (Volcker Rule). The EGRRCPA amended the Volcker Rule, in part, by narrowing the scope of the term “banking entity” and limiting, under certain circumstances, the restrictions imposed on banking entities with respect to name-sharing with certain hedge funds and private equity funds that they organize and offer. Following the adoption of the EGRRCPA, the Board of Governors of the Federal Reserve System (Federal Reserve), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) jointly issued a statement indicating their intention to address the EGRRCPA’s statutory amendments to the Volcker Rule through a separate rulemaking process. On December 18, 2018, the Federal Reserve, the OCC, the FDIC, the Securities and Exchange Commission, and the Commodity Futures Trading Commission (collectively, the Agencies) released a notice of proposed rulemaking (Proposal) to amend the Volcker Rule in a manner consistent with the statutory amendments made pursuant to the EGRRCPA.