Topics:

Litigation

• Court Rules State Market Timing Claims Precluded by SLUSA
• Second Circuit Reverses Decision in Derivative Action Against Fund Board, Certifies Question to Massachusetts Supreme Court
• Court Rules in Favor of American Funds in Fee Case

New Rules, Proposed Rules and Guidance

• SEC Adopts Money Market Fund Reforms
• FINRA Provides Guidance on Blogs and Social Networking Websites
• SEC Adopts Amendments to Investment Adviser Custody Rule
• SEC Extends Temporary Rule Regarding Adviser Principal Trades
• SEC Adopts New Disclosure Requirements for Board Governance Matters
• Federal Regulatory Agencies Issue Model Privacy Notice Form

New Legislation

• Congressman Introduces Banking Integrity Act
• Congressmen Introduce Regulated Investment Company Modernization Act of 2009
• House Approves Wall Street Reform and Consumer Protection Act of 2009

Other News

• IDC Issues Task Force Report on Board Oversight of Subadvisers
• SEC Makes Enforcement Changes
• Director of SEC’s Division of Investment Management Comments on Independent Director Issues at IDC Conference

Enforcement Actions

• SEC Charges Advisers for Unlawful Short Selling Practices
• SEC Settles Charges Against Adviser’s CFO/CCO for Aiding and Abetting Adviser’s Fraud
• SEC Settles Charges Against Investment Adviser Representative for Aiding and Abetting and Causing Morgan Stanley’s Advisers Act Violation
• SEC Charges U.S. Subsidiary of World’s Largest Inter-Dealer Broker for Displaying Fictitious Trades and Misleading Customers
• SEC Charges Investment Adviser and COO for Trade Allocation Violations
• FINRA Fines Terra Nova Financial $400,000 for Improper Soft Dollar Payments
• SEC Charges Investment Adviser and Two Senior Officers for $24 Million Fraudulent Scheme

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