Foreign Investment Funds
At the end of last week, the Fed and the other banking agencies issued an interpretation that applied to investments in certain foreign funds by foreign banking organizations that are subject to the Volcker rule. Such banks may control what is kno
wn as an excluded foreign fund until July 21, 2018, without having the investments made by such fund being subject to the Volcker rule. Under the Fed’s interpretation of the Volcker rule, certain investment funds sold exclusively outside the U.S. would be deemed subject to the Volcker rule if these funds were controlled by a foreign bank that was itself subject to the Volcker rule.