Key takeaways

• On Friday afternoon, the Federal Reserve and other agencies charged with implementing the Volcker Rule issued new guidance, in the form of two Frequently Asked Questions, regarding the treatment of so-called “foreign public funds” and “joint ventures” under the final regulations implementing the Volcker Rule.
• The foreign public fund guidance clarifies that banking entities may maintain governance, management and other relationships with sponsored foreign public funds without those funds being subject to the limits and restrictions of the Volcker Rule.
• The joint venture guidance clarifies limits on the ability to use joint ventures as an exemption to the Volcker Rule’s covered fund prohibitions.
• The guidance, although helpful, fails to address a number of other important interpretive questions that face the industry, even as the July 21, 2015 Volcker Rule conformance date fast approaches.