Japan banks to sidestep Volcker private equity restrictions

Parallel fund structures given the go-ahead by the US

The Volcker exemption is especially applicable to Japanese megabanks such as Mizuho

US regulators have rolled back one of the extraterritorial impacts of the Dodd-Frank Act by giving a green light to a parallel fund structure that will allow Asian banks caught by the Volcker rule to legitimately sidestep the investment restrictions placed on banks allocating cash to private equity funds. Named after former Federal Reserve chairman Paul Volcker, the Volcker rule prohibits proprietary trading and private fund investing by banking entities and extends its application to a set o