The Financial Stability Oversight Council (FSOC), established under the Dodd-Frank Act to monitor the stability of the nation’s financial system and guard against systemic threats, held its inaugural meeting on October 1, 2010.
At its inaugural meeting, the FSOC issued a notice and request for public comment in order to complete the statutorily mandated study regarding the implementation of the prohibitions on proprietary trading and certain relationships with hedge funds and private equity funds by “banking entities.” Section 619 of the Dodd-Frank Act, commonly known as the “Volcker Rule,” requires the FSOC to study and make recommendations on the implementation of this prohibition. The FSOC has issued a request for information through public comment to assist it in conducting the study and formulating its recommendations. Comments must be submitted electronically via the Federal eRulemaking Portal and will be made publicly available by the FSOC.
The full text of the FSOC’s public comment request may be found here.