On, November 13, 2014, the Federal Reserve Board, the FDIC, the OCC, the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) updated the Volcker Rule FAQs, adding two questions regarding metrics reporting during the conformance period and mortgage-backed securities (“MBS”) of government-sponsored enterprises. The Volcker Rule prohibits “banking entities” (as defined in the Volcker Rule) from engaging in proprietary trading activities and acquiring or retaining ownership interests in hedge funds and private equity funds and certain other funds, referred to as “covered funds” in the regulations implementing the Volcker Rule.

The FAQs relating to metrics reporting state that while certain banking entities are currently required to report metrics relating to the prohibition on proprietary trading, reporting of the related limits is not required until the end of the conformance period under the Volcker Rule, although banking entities that have established limits are urged to report such limits.

The FAQs relating to MBS state that certain federally sponsored issuers of MBS, such as those sponsored by Fannie Mae, are exempt from the Investment Company of 1940 under Section 2(b) of that Act and therefore would not be covered funds for the purposes of the Volcker Rule.

The updated FAQs are available at:

http://www.federalreserve.gov/bankinforeg/volcker-rule/faq.htm.