Volcker Rule: Comptroller of the Currency Releases Request for Information on the Volcker Rule’s Implementation, Application and Administration

Sullivan & Cromwell LLP - August 3, 2017

Yesterday, the Office of the Comptroller of the Currency issued a notice seeking public input (the "Request for Comment") on the final regulations (the "Final Rule") implementing section 13 of the Bank Holding Company Act of 1956, as amended, commonly known as the "Volcker Rule."  The Request for Comment is intended to assist the OCC in determining how the Final Rule "should be revised to better accomplish the purposes of the statute," and solicits public comment on potential improvements regarding the ways in which the Final Rule has been applied and administered to date.  The Request for Comment follows a report issued in June by the Department of the Treasury that identified a number of concerns with the Final Rule and suggested recommendations for revisions.  Acting Comptroller of the Currency Keith Noreika noted that the Request for Comment “is one piece of a larger interagency effort to improve the [Final Rule]” and said he is “look[ing] forward to reviewing the comments and to joining the other regulators soon on a Notice of Proposed Rulemaking to amend the [Final Rule].”  Treasury Secretary Steven Mnuchin has also pledged to use his role as Chairman of the Financial Stability Oversight Council to "address the issue of the definition of the Volcker Rule to make sure that banks can provide the necessary liquidity for customer markets."  The Request for Comment marks the first time one of the five Agencies responsible for implementing the Volcker Rule has formally initiated a broad review of its implementation and solicited feedback on potential changes to the Final Rule.  Comments will be due 45 days after the publication of the Request for Comment in the Federal Register.