Topics:

New Rules, Proposed Rules and Guidance

• SEC Adopts Restrictions to Short-Selling Practices
• SEC Adopts Amendments to Rules Requiring Internet Availability of Proxy Materials
• 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

Litigation

• Second Circuit Vacates Dismissal of Section 10(b) Claims Against Citigroup Entities, Affirms Dismissal of Section 36(b) Claims
• 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 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

Enforcement Actions

• SEC Charges Madoff’s Director of Operations with Falsifying Accounting Records and Siphoning Investor Funds
• SEC Charges State Street for Misleading Investors About Subprime Mortgage Investments
• SEC Charges Advisers for Unlawful Short Selling Practices
• SEC Files Settled Insider Trading Charges Against Evergreen Insider
• 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

To read the newsletter, click the link below.