SIFMA today issued the following statement from Kenneth E. Bentsen, Jr., EVP, Public Policy and Advocacy at SIFMA, on the guidance released by the Federal Reserve regarding the Volcker Rule conformance period:
“The clarification of the Volcker Rule conformance period which was issued today is entirely appropriate and necessary. The industry has been concerned throughout this process over what was to be expected on July 21, 2012, and that concern was heightened as it appears likely that regulators may not be able to promulgate a final rule by that date. Today’s guidance that firms subject to Volcker will be able to use the full two year conformance period to come into compliance with the rule as provided for by the statute is critically important because it alleviates concerns over potentially having to comply with a rule whose details had not yet been made clear.
“SIFMA continues to believe that the rule as proposed is structurally flawed, particularly as it relates to the assumption that any activity is prohibited proprietary trading unless otherwise explicitly prescribed. We believe this is inconsistent with Congressional intent and results in an overly narrow interpretation of the permitted activities that constrains the beneficial effects those activities have for corporate issuers and investors that rely on the capital markets to meet their business and investment needs.”
The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.