Implementation of the Volcker Rule has proven to be among the most complex and controversial regulatory regimes ever to be introduced into the financial services industry. Firms need to make significant investments in technology and infrastructure in order to comply with its intensive monitoring and reporting requirements. The compliance program requires a heavy infrastructure investment for most firms, and institutions have been evaluating how they want to organize their trading desks, trading accounts, and hedging activities under the Volcker Rule.
We believe the full impact of the Rule on both institutions and the financial markets will still take time to unfold. Banking entities should anticipate that this will likely not be the only unintended effect from the Volcker Rule. KPMG will continue to assess the impact of the Volcker Rule so that we can assist financial institutions to better understand the full scope of this new regulation, its potential impact on their businesses and what measures will need to be implemented to comply.
Please take a look at the full "Implementation of the Volcker Rule" regulatory practice letter for more information and contact us if you have any questions.