More small business need-to-know and news-to-watch today. The study examines the rule, the effect and the result.
Excerpt: Generally, the Dodd-Frank Act exempts proprietary trading by FBOs that is conducted solely outside the United States, and, provided that no ownership interest in a fund is offered or sold in the United States, investment fund-related activities by FBOs conducted solely outside the United States. The exemptions are available under the Dodd-Frank Act for FBOs (or their affiliates) not controlled by U.S.-based banking entities as long as the activities in question are conducted consistent with the exemption accorded FBOs for activities conducted outside the United States pursuant to Sections 4(c)(9 ) or 4(c)(13) of the Bank Holding Company Act. Accordingly, the exemptions are not available for activities conducted by the U.S. branches or agencies of FBOs, or by U.S. banks or U.S. commercial lending companies owned by FBOs.
However, for FBOs, the non-U.S. exemptions do not apply automatically. In order to conduct otherwise forbidden trading or fund activity outside the United States, an FBO must satisfy several conditions, and it must adhere to several continuing requirements, some of which are so restrictive as to limit the utility of these non-U.S. exemptions
Read full article via The Volcker Rule’s Impact on Foreign Banking Organizations — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
