U.S. fund industry sees modest wins in final Volcker rule

(Reuters) – Banks and asset managers scored some small victories after U.S. regulators narrowed the scope of a provision in the Volcker rule that restricts banks’ ownership stake in hedge funds and private equity funds. The final version of the Volcker rule, required by the 2010 Dodd-Frank Wall Street reform law, strives to draw a much clearer line for what qualifies as a hedge fund or private equity fund. Regulators decided to exempt certain funds after Wall Street complained that an earlier draft would have applied to an unnecessarily broad swath of the industry, including many commodity pools, foreign registered mutual funds, securitized loans and corporate structures such as joint ventures.

    

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