The Federal Reserve’s two-year deadline extension for banks to conform their collateralized loan obligation to the Volcker Rule apparently will not port over to the new owners of the notes prior to July 2017, an industry trade group spokesman said Wednesday at a CLO conference in New York.

Elliot Ganz, a co-head of the government and policy advocacy arm of the Loan Syndications and Trading Association, said such a policy will only further complicate banks’ effort to divest of the securities that regulators are dead-set against banks holding.

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