A banking entity may acquire or retain an owner- ship interest in a covered fund for hedging purposes if the acquisition or retention of the ownership interest meets specifi ed criteria. Among other things, the hedging activity must (i) be made in accordance with the banking entity’s internal controls (which must comply with certain requirements); 58 (ii) be performed by persons whose compensation arrangements are not designed to reward proprietary risk-taking; 59 and (iii) be made in connection with liabilities of the banking entity that are (a) conducted on behalf of a non-banking entity customer to facilitate exposure by the customer to.
