68846 Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 44
[Docket No. OCC–2011–0014]
RIN 1557–AD44
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
12 CFR Part 248
[Docket No. R–1432]
RIN 7100 AD 82
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 351
RIN 3064–AD85
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 255
[Release No. 34–65545; File No. S7–41–11]
RIN 3235–AL07
Prohibitions and Restrictions on
Proprietary Trading and Certain
Interests in, and Relationships With,
Hedge Funds and Private Equity Funds
AGENCY: Office of the Comptroller of the
Currency, Treasury (‘‘OCC’’); Board of
Governors of the Federal Reserve
System (‘‘Board’’); Federal Deposit
Insurance Corporation (‘‘FDIC’’); and
Securities and Exchange Commission
(‘‘SEC’’).
ACTION: Notice of proposed rulemaking.
SUMMARY: The OCC, Board, FDIC, and
SEC (individually, an ‘‘Agency,’’ and
collectively, ‘‘the Agencies’’) are
requesting comment on a proposed rule
that would implement Section 619 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act (‘‘Dodd-Frank
Act’’) which contains certain
prohibitions and restrictions on the
ability of a banking entity and nonbank
financial company supervised by the
Board to engage in proprietary trading
and have certain interests in, or
relationships with, a hedge fund or
private equity fund.
DATES: Comments should be received on
or before January 13, 2012.
ADDRESSES: Interested parties are
encouraged to submit written comments
jointly to all of the Agencies.
Commenters are encouraged to use the
title ‘‘Restrictions on Proprietary
Trading and Certain Interests in, and
Relationships with, Hedge Funds and
Private Equity Funds’’ to facilitate the
organization and distribution of
comments among the Agencies.
Commenters are also encouraged to
identify the number of the specific
question for comment to which they are
responding.
Office of the Comptroller of the
Currency: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by the
Federal eRulemaking Portal or email, if
possible. Please use the title
‘‘Restrictions on Proprietary Trading
and Certain Interests in and
Relationships with Hedge Funds and
Private Equity Funds’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘Regulations.gov’’: Go to http://
www.regulations.gov. Select ‘‘Document
Type’’ of ‘‘Proposed Rules,’’ and in the
‘‘Enter Keyword or ID Box,’’ enter
Docket ID ‘‘OCC–2011–14,’’ and click
‘‘Search.’’ On ‘‘View By Relevance’’ tab
at the bottom of screen, in the ‘‘Agency’’
column, locate the Proposed Rule for
the OCC, in the ‘‘Action’’ column, click
on ‘‘Submit a Comment’’ or ‘‘Open
Docket Folder’’ to submit or view public
comments and to view supporting and
related materials for this rulemaking
action.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting or
viewing public comments, viewing
other supporting and related materials,
and viewing the docket after the close
of the comment period.
• Email:
regs.comments@occ.treas.gov.
• Mail: Office of the Comptroller of
the Currency, 250 E Street SW., Mail
Stop 2–3, Washington, DC 20219.
• Fax: (202) 874–5274.
• Hand Delivery/Courier: 250 E Street
SW., Mail Stop 2–3, Washington, DC
20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2011–14’’ in your comment. In
general, OCC will enter all comments
received into the docket and publish
them on the Regulations.gov Web site
without change, including any business
or personal information that you
provide such as name and address
information, email addresses, or phone
numbers. Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
proposed rulemaking by any of the
following methods:
• Viewing Comments Electronically:
Go to http://www.regulations.gov. Select
‘‘Document Type’’ of ‘‘Public
Submissions,’’ and in the ‘‘Enter
Keyword or ID Box,’’ enter Docket ID
‘‘OCC–2011–14,’’ and click ‘‘Search.’’
Comments will be listed under ‘‘View
By Relevance’’ tab at the bottom of
screen. If comments from more than one
agency are listed, the ‘‘Agency’’ column
will indicate which comments were
received by the OCC.
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC, 250 E Street SW.,
Washington, DC 20219. For security
reasons, the OCC requires that visitors
make an appointment to inspect
comments. You may do so by calling
(202) 874–4700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and submit to security screening in
order to inspect and photocopy
comments.
Docket: You may also view or request
available background documents and
project summaries using the methods
described above.
Board of Governors of the Federal
Reserve System:
You may submit comments, identified
by Docket No. R–1432 and RIN 7100 AD
82, by any of the following methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/general
info/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email:
regs.comments@federalreserve.gov.
Include the docket number in the
subject line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Address to Jennifer J. Johnson,
Secretary, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
All public comments will be made
available on the Board’s Web site at
http://www.federalreserve.gov/general
info/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons. Accordingly, comments will
not be edited to remove any identifying
or contact information. Public
VerDate Mar<15>2010 18:20 Nov 04, 2011 Jkt 226001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\07NOP2.SGM 07NOP2
emcdonald on DSK5VPTVN1PROD with PROPOSALS2
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 44
[Docket No. OCC–2011–0014]
RIN 1557–AD44
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
12 CFR Part 248
[Docket No. R–1432]
RIN 7100 AD 82
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 351
RIN 3064–AD85
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 255
[Release No. 34–65545; File No. S7–41–11]
RIN 3235–AL07
Prohibitions and Restrictions on
Proprietary Trading and Certain
Interests in, and Relationships With,
Hedge Funds and Private Equity Funds
AGENCY: Office of the Comptroller of the
Currency, Treasury (‘‘OCC’’); Board of
Governors of the Federal Reserve
System (‘‘Board’’); Federal Deposit
Insurance Corporation (‘‘FDIC’’); and
Securities and Exchange Commission
(‘‘SEC’’).
ACTION: Notice of proposed rulemaking.
SUMMARY: The OCC, Board, FDIC, and
SEC (individually, an ‘‘Agency,’’ and
collectively, ‘‘the Agencies’’) are
requesting comment on a proposed rule
that would implement Section 619 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act (‘‘Dodd-Frank
Act’’) which contains certain
prohibitions and restrictions on the
ability of a banking entity and nonbank
financial company supervised by the
Board to engage in proprietary trading
and have certain interests in, or
relationships with, a hedge fund or
private equity fund.
DATES: Comments should be received on
or before January 13, 2012.
ADDRESSES: Interested parties are
encouraged to submit written comments
jointly to all of the Agencies.
Commenters are encouraged to use the
title ‘‘Restrictions on Proprietary
Trading and Certain Interests in, and
Relationships with, Hedge Funds and
Private Equity Funds’’ to facilitate the
organization and distribution of
comments among the Agencies.
Commenters are also encouraged to
identify the number of the specific
question for comment to which they are
responding.
Office of the Comptroller of the
Currency: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by the
Federal eRulemaking Portal or email, if
possible. Please use the title
‘‘Restrictions on Proprietary Trading
and Certain Interests in and
Relationships with Hedge Funds and
Private Equity Funds’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘Regulations.gov’’: Go to http://
www.regulations.gov. Select ‘‘Document
Type’’ of ‘‘Proposed Rules,’’ and in the
‘‘Enter Keyword or ID Box,’’ enter
Docket ID ‘‘OCC–2011–14,’’ and click
‘‘Search.’’ On ‘‘View By Relevance’’ tab
at the bottom of screen, in the ‘‘Agency’’
column, locate the Proposed Rule for
the OCC, in the ‘‘Action’’ column, click
on ‘‘Submit a Comment’’ or ‘‘Open
Docket Folder’’ to submit or view public
comments and to view supporting and
related materials for this rulemaking
action.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting or
viewing public comments, viewing
other supporting and related materials,
and viewing the docket after the close
of the comment period.
• Email:
regs.comments@occ.treas.gov.
• Mail: Office of the Comptroller of
the Currency, 250 E Street SW., Mail
Stop 2–3, Washington, DC 20219.
• Fax: (202) 874–5274.
• Hand Delivery/Courier: 250 E Street
SW., Mail Stop 2–3, Washington, DC
20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2011–14’’ in your comment. In
general, OCC will enter all comments
received into the docket and publish
them on the Regulations.gov Web site
without change, including any business
or personal information that you
provide such as name and address
information, email addresses, or phone
numbers. Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
proposed rulemaking by any of the
following methods:
• Viewing Comments Electronically:
Go to http://www.regulations.gov. Select
‘‘Document Type’’ of ‘‘Public
Submissions,’’ and in the ‘‘Enter
Keyword or ID Box,’’ enter Docket ID
‘‘OCC–2011–14,’’ and click ‘‘Search.’’
Comments will be listed under ‘‘View
By Relevance’’ tab at the bottom of
screen. If comments from more than one
agency are listed, the ‘‘Agency’’ column
will indicate which comments were
received by the OCC.
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC, 250 E Street SW.,
Washington, DC 20219. For security
reasons, the OCC requires that visitors
make an appointment to inspect
comments. You may do so by calling
(202) 874–4700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and submit to security screening in
order to inspect and photocopy
comments.
Docket: You may also view or request
available background documents and
project summaries using the methods
described above.
Board of Governors of the Federal
Reserve System:
You may submit comments, identified
by Docket No. R–1432 and RIN 7100 AD
82, by any of the following methods:
• Agency Web site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/general
info/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email:
regs.comments@federalreserve.gov.
Include the docket number in the
subject line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Address to Jennifer J. Johnson,
Secretary, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
All public comments will be made
available on the Board’s Web site at
http://www.federalreserve.gov/general
info/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons. Accordingly, comments will
not be edited to remove any identifying
or contact information. Public
VerDate Mar<15>2010 18:20 Nov 04, 2011 Jkt 226001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\07NOP2.SGM 07NOP2
emcdonald on DSK5VPTVN1PROD with PROPOSALS2
68847Federal Register / Vol. 76, No. 215 / Monday, November 7, 2011 / Proposed Rules
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010).
2 Application of the proposed rule to smaller,
less-complex banking entities is discussed below in
Part II.F of this Supplemental Information.
3 The term ‘‘banking entity’’ is defined in section
13(h)(1) of the BHC Act, as amended by section 619
of the Dodd-Frank Act. See 12 U.S.C. 1851(h)(1).
The statutory definition includes any insured
depository institution (other than certain limited
purpose trust institutions), any company that
controls an insured depository institution, any
company that is treated as a bank holding company
for purposes of section 8 of the International
Banking Act of 1978 (12 U.S.C. 3106), and any
affiliate or subsidiary of any of the foregoing.
Section 13 of the BHC Act defines the terms ‘‘hedge
fund’’ and ‘‘private equity fund’’ as an issuer that
would be an investment company, as defined under
the Investment Company Act of 1940 (15 U.S.C.
80a–1 et seq.), but for section 3(c)(1) or 3(c)(7) of
that Act, or any such similar funds as the
appropriate Federal banking agencies (i.e., the
Board, OCC, and FDIC), the SEC, and the CFTC
may, by rule, determine should be treated as a
hedge fund or private equity fund. See 12 U.S.C.
1851(h)(2).
4 See 12 U.S.C. 1851(a)(2) and (f)(4). A ‘‘nonbank
financial company supervised by the Board’’ is a
nonbank financial company or other company that
the Financial Stability Oversight Council
(‘‘Council’’) has determined, under section 113 of
the Dodd-Frank Act, shall be subject to supervision
by the Board and prudential standards. The Board
is not proposing at this time any additional capital
requirements, quantitative limits, or other
Continued
comments may also be viewed
electronically or in paper in Room MP–
500 of the Board’s Martin Building (20th
and C Streets NW.,) between 9 a.m. and
5 p.m. on weekdays.
Federal Deposit Insurance
Corporation: You may submit
comments, identified by RIN number,
by any of the following methods:
• Agency Web site: http://
www.fdic.gov/regulations/laws/federal/
propose.html. Follow instructions for
submitting comments on the Agency
Web site.
• Email: Comments@fdic.gov. Include
the RIN 3064–AD85 on the subject line
of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7 a.m. and 5 p.m.
Public Inspection: All comments
received must include the agency name
and RIN 3064–AD85 for this
rulemaking. All comments received will
be posted without change to http://
www.fdic.gov/regulations/laws/federal/
propose.html, including any personal
information provided. Paper copies of
public comments may be ordered from
the FDIC Public Information Center,
3501 North Fairfax Drive, Room E–I002,
Arlington, VA 22226 by telephone at
1 (877) 275–3342 or 1 (703) 562–2200.
Securities and Exchange Commission:
You may submit comments by the
following method:
Electronic Comments
• Use the Commission’s Internet
comment form (http://www.sec.gov/
rules/proposed.shtml); or
• Send an email to rule-
comments@sec.gov. Please include File
Number S7–41–11 on the subject line;
or
• Use the Federal eRulemaking Portal
(http://www.regulations.gov). Follow the
instructions for submitting comments.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number S7–41–11. This file number
should be included on the subject line
if email is used. To help us process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(http://www.sec.gov/rules/
proposed.shtml). Comments are also
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10 a.m. and 3 p.m. All comments
received will be posted without change;
we do not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT:
OCC: Deborah Katz, Assistant Director,
or Ursula Pfeil, Counsel, Legislative and
Regulatory Activities Division, (202)
874–5090; Roman Goldstein, Senior
Attorney, Securities and Corporate
Practices Division, (202) 874–5210; Kurt
Wilhelm, Director for Financial Markets
Group, (202) 874–4660; Stephanie
Boccio, Technical Expert for Asset
Management Group, or Joel Miller,
Group Leader for Asset Management
Group, (202) 874–4660, Office of the
Comptroller of the Currency, 250 E
Street SW., Washington, DC 20219.
Board: Jeremy R. Newell, Counsel,
(202) 452–3239, or Christopher M.
Paridon, Counsel, Legal Division, (202)
452–3274; Sean D. Campbell, Deputy
Associate Director, Division of Research
and Statistics, (202) 452–3760; David
Lynch, Manager, Division of Bank
Supervision and Regulation, (202) 452–
2081, Board of Governors of the Federal
Reserve System, 20th and C Streets,
NW., Washington, DC 20551.
FDIC: Bobby R. Bean, Acting
Associate Director, Capital Markets
(202) 898–6705, or Karl R. Reitz, Senior
Capital Markets Specialist, (202) 898–
6775, Division of Risk Management
Supervision; Michael B. Phillips,
Counsel, (202) 898–3581, or Gregory S.
Feder, Counsel, (202) 898–8724, Legal
Division, Federal Deposit Insurance
Corporation, 550 17th Street NW.,
Washington, DC 20429–0002.
SEC: Josephine Tao, Assistant
Director, Elizabeth Sandoe, Senior
Special Counsel, David Bloom, Branch
Chief, Anthony Kelly, Special Counsel,
Angela Moudy, Attorney Advisor, or
Daniel Staroselsky, Attorney Advisor,
Office of Trading Practices, Division of
Trading and Markets, (202) 551–5720;
David Blass, Chief Counsel, or Gregg
Berman, Senior Advisor to the Director,
Division of Trading and Markets; Daniel
S. Kahl, Assistant Director, Tram N.
Nguyen, Branch Chief, Michael J. Spratt,
Senior Counsel, or Parisa Haghshenas,
Law Clerk, Office of Investment Adviser
Regulation, Division of Investment
Management, (202) 551–6787; David
Beaning, Special Counsel, Office of
Structured Finance, Division of
Corporation Finance, (202) 551–3850;
John Harrington, Special Counsel, Office
of Capital Market Trends, Division of
Corporation Finance, (202) 551–3860;
Richard Bookstaber, Senior Policy
Advisor, or Jennifer Marietta-Westberg,
Assistant Director, Office of the Sell
Side; or Adam Yonce, Financial
Economist, Division of Risk Strategy
and Financial Innovation, (202) 551–
6600, U.S. Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Act was enacted on
July 21, 2010.1 Section 619 of the Dodd-
Frank Act added a new section 13 to the
Bank Holding Company Act of 1956
(‘‘BHC Act’’) (to be codified at 12 U.S.C.
1851) that generally prohibits any
banking entity 2 from engaging in
proprietary trading or from acquiring or
retaining an ownership interest in,
sponsoring, or having certain
relationships with a hedge fund or
private equity fund (‘‘covered fund’’),
subject to certain exemptions.3 New
section 13 of the BHC Act also provides
for nonbank financial companies
supervised by the Board that engage in
such activities or have such interests or
relationships to be subject to additional
capital requirements, quantitative
limits, or other restrictions.4
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emcdonald on DSK5VPTVN1PROD with PROPOSALS2
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010).
2 Application of the proposed rule to smaller,
less-complex banking entities is discussed below in
Part II.F of this Supplemental Information.
3 The term ‘‘banking entity’’ is defined in section
13(h)(1) of the BHC Act, as amended by section 619
of the Dodd-Frank Act. See 12 U.S.C. 1851(h)(1).
The statutory definition includes any insured
depository institution (other than certain limited
purpose trust institutions), any company that
controls an insured depository institution, any
company that is treated as a bank holding company
for purposes of section 8 of the International
Banking Act of 1978 (12 U.S.C. 3106), and any
affiliate or subsidiary of any of the foregoing.
Section 13 of the BHC Act defines the terms ‘‘hedge
fund’’ and ‘‘private equity fund’’ as an issuer that
would be an investment company, as defined under
the Investment Company Act of 1940 (15 U.S.C.
80a–1 et seq.), but for section 3(c)(1) or 3(c)(7) of
that Act, or any such similar funds as the
appropriate Federal banking agencies (i.e., the
Board, OCC, and FDIC), the SEC, and the CFTC
may, by rule, determine should be treated as a
hedge fund or private equity fund. See 12 U.S.C.
1851(h)(2).
4 See 12 U.S.C. 1851(a)(2) and (f)(4). A ‘‘nonbank
financial company supervised by the Board’’ is a
nonbank financial company or other company that
the Financial Stability Oversight Council
(‘‘Council’’) has determined, under section 113 of
the Dodd-Frank Act, shall be subject to supervision
by the Board and prudential standards. The Board
is not proposing at this time any additional capital
requirements, quantitative limits, or other
Continued
comments may also be viewed
electronically or in paper in Room MP–
500 of the Board’s Martin Building (20th
and C Streets NW.,) between 9 a.m. and
5 p.m. on weekdays.
Federal Deposit Insurance
Corporation: You may submit
comments, identified by RIN number,
by any of the following methods:
• Agency Web site: http://
www.fdic.gov/regulations/laws/federal/
propose.html. Follow instructions for
submitting comments on the Agency
Web site.
• Email: Comments@fdic.gov. Include
the RIN 3064–AD85 on the subject line
of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street Building
(located on F Street) on business days
between 7 a.m. and 5 p.m.
Public Inspection: All comments
received must include the agency name
and RIN 3064–AD85 for this
rulemaking. All comments received will
be posted without change to http://
www.fdic.gov/regulations/laws/federal/
propose.html, including any personal
information provided. Paper copies of
public comments may be ordered from
the FDIC Public Information Center,
3501 North Fairfax Drive, Room E–I002,
Arlington, VA 22226 by telephone at
1 (877) 275–3342 or 1 (703) 562–2200.
Securities and Exchange Commission:
You may submit comments by the
following method:
Electronic Comments
• Use the Commission’s Internet
comment form (http://www.sec.gov/
rules/proposed.shtml); or
• Send an email to rule-
comments@sec.gov. Please include File
Number S7–41–11 on the subject line;
or
• Use the Federal eRulemaking Portal
(http://www.regulations.gov). Follow the
instructions for submitting comments.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number S7–41–11. This file number
should be included on the subject line
if email is used. To help us process and
review your comments more efficiently,
please use only one method. The
Commission will post all comments on
the Commission’s Internet Web site
(http://www.sec.gov/rules/
proposed.shtml). Comments are also
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10 a.m. and 3 p.m. All comments
received will be posted without change;
we do not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT:
OCC: Deborah Katz, Assistant Director,
or Ursula Pfeil, Counsel, Legislative and
Regulatory Activities Division, (202)
874–5090; Roman Goldstein, Senior
Attorney, Securities and Corporate
Practices Division, (202) 874–5210; Kurt
Wilhelm, Director for Financial Markets
Group, (202) 874–4660; Stephanie
Boccio, Technical Expert for Asset
Management Group, or Joel Miller,
Group Leader for Asset Management
Group, (202) 874–4660, Office of the
Comptroller of the Currency, 250 E
Street SW., Washington, DC 20219.
Board: Jeremy R. Newell, Counsel,
(202) 452–3239, or Christopher M.
Paridon, Counsel, Legal Division, (202)
452–3274; Sean D. Campbell, Deputy
Associate Director, Division of Research
and Statistics, (202) 452–3760; David
Lynch, Manager, Division of Bank
Supervision and Regulation, (202) 452–
2081, Board of Governors of the Federal
Reserve System, 20th and C Streets,
NW., Washington, DC 20551.
FDIC: Bobby R. Bean, Acting
Associate Director, Capital Markets
(202) 898–6705, or Karl R. Reitz, Senior
Capital Markets Specialist, (202) 898–
6775, Division of Risk Management
Supervision; Michael B. Phillips,
Counsel, (202) 898–3581, or Gregory S.
Feder, Counsel, (202) 898–8724, Legal
Division, Federal Deposit Insurance
Corporation, 550 17th Street NW.,
Washington, DC 20429–0002.
SEC: Josephine Tao, Assistant
Director, Elizabeth Sandoe, Senior
Special Counsel, David Bloom, Branch
Chief, Anthony Kelly, Special Counsel,
Angela Moudy, Attorney Advisor, or
Daniel Staroselsky, Attorney Advisor,
Office of Trading Practices, Division of
Trading and Markets, (202) 551–5720;
David Blass, Chief Counsel, or Gregg
Berman, Senior Advisor to the Director,
Division of Trading and Markets; Daniel
S. Kahl, Assistant Director, Tram N.
Nguyen, Branch Chief, Michael J. Spratt,
Senior Counsel, or Parisa Haghshenas,
Law Clerk, Office of Investment Adviser
Regulation, Division of Investment
Management, (202) 551–6787; David
Beaning, Special Counsel, Office of
Structured Finance, Division of
Corporation Finance, (202) 551–3850;
John Harrington, Special Counsel, Office
of Capital Market Trends, Division of
Corporation Finance, (202) 551–3860;
Richard Bookstaber, Senior Policy
Advisor, or Jennifer Marietta-Westberg,
Assistant Director, Office of the Sell
Side; or Adam Yonce, Financial
Economist, Division of Risk Strategy
and Financial Innovation, (202) 551–
6600, U.S. Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Act was enacted on
July 21, 2010.1 Section 619 of the Dodd-
Frank Act added a new section 13 to the
Bank Holding Company Act of 1956
(‘‘BHC Act’’) (to be codified at 12 U.S.C.
1851) that generally prohibits any
banking entity 2 from engaging in
proprietary trading or from acquiring or
retaining an ownership interest in,
sponsoring, or having certain
relationships with a hedge fund or
private equity fund (‘‘covered fund’’),
subject to certain exemptions.3 New
section 13 of the BHC Act also provides
for nonbank financial companies
supervised by the Board that engage in
such activities or have such interests or
relationships to be subject to additional
capital requirements, quantitative
limits, or other restrictions.4
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