The SEC along with other banking agencies released a proposal to amend a section of the Bank Holding Company Act that was enacted under the Dodd-Frank Act, in order to provide banking entities with greater clarity and certainty about what activities are prohibited and improve effective allocation of compliance resources where possible. The provision known as the Volcker Rule generally prohibits any banking entity from engaging in proprietary trading or from acquiring or retaining an ownership interest in, sponsoring, or having certain relationships with a hedge fund or private equity fund, subject to certain exemptions. The proposal would not permit proprietary trading, but would simplify and tailor the existing rule to increase efficiency, streamline compliance with the rule, and allow banking entities to more efficiently provide services to clients, among other things according to Chairman Jay Clayton.