Banks are restricted from investing in private funds? Think again.
On January 30, the Federal Reserve (alongside other regulators) issued a proposal that would remove certain restrictions on banks to allow them to invest in, or sponsor, hedge funds or private equity funds (so-called covered funds). In particular, the recent proposal modifies provisions of the regulations implementing the Volcker rule, to allow banks to invest in certain funds and to sponsor or maintain ownership interests in venture capital funds.
Contemporaneous with the Volcker proposal, the Fed finalized a separate rule concerning “control” that would to make it easier for venture capital and hedge funds to invest in banks (and vice versa).
The Volcker proposal and final “control” rule, collectively, will facilitate greater capital throughout the banking system and institutions should prepare to capitalize on this opportunity.
This banking webinar will cover:
- Key provisions of the Volcker proposal, recent changes, and areas of interest for affected institutions;
- The Fed’s final rule on its “control” framework and key distinctions from the 2019 notice of proposed rulemaking (NPR); and
- Opportunities for banks and investors to capitalize on changes under the Volcker proposal and the Fed’s final rule on “control.”
This executive webinar is appropriate for:
- Venture capital firms, private equity funds, and investment staff at venture arms of banks and savings associations;
- Bank executive officers, bank directors, and other senior management; and
- Bank staff investing in, and/or partnering with, fintech companies.