Key takeaways

• Yesterday, the Federal Reserve and other agencies charged with implementing the Volcker Rule issued a new Frequently Asked Question regarding the permissible seeding period for registered investment companies, business development companies and so-called “foreign public funds.”
• The guidance comes in response to numerous requests from the industry for clarification, and appears to permit a greater than 3-year seeding period for these types of vehicles.
• The guidance does not explicitly address the issue of how to determine the date on which a seeding period begins; however, in light of the flexibility for a multi-year seeding period, this question seems less important.