Topics:

Litigation

• U.S. Supreme Court Rules in Jones v. Harris Associates; Vacates and Remands Gallus v. Ameriprise Financial
• Court Allows Class Action Against Evergreen Entities and Fund Trustees to Proceed
• District Court Judge Rules in Favor of Plaintiffs in Schwab YieldPlus Fund Case
• First Circuit Rejects the SEC’s Interpretation of Rule 10b-5
• Second Circuit Vacates Dismissal of Section 10(b) Claims Against Citigroup Entities, Affirms Dismissal of Section 36(b) Claims

New Rules, Proposed Rules and Guidance

• SEC Releases AML Guidance on Beneficial Ownership Information
• SEC Adopts Restrictions to Short-Selling Practices
• SEC Adopts Amendments to Rules Requiring Internet Availability of Proxy Materials

Legislation

• Senate Committee Approves Restoring American Financial Stability Act of 2010

Other News

• Mutual Fund Directors Forum Issues Practical Guidance for Fund Directors on Effective Risk Management Oversight
• IDC Issues Memorandum on Board Oversight of Target Retirement Date Funds
• SEC Staff Evaluating the Use of Derivatives by Funds
• Closed-End Fund May Not Exclude Shareholder Proposal to Amend Bylaws Directing Board to Terminate Advisory Agreement

Enforcement Actions

• FINRA Fines HSBC Securities (USA) and U.S. Bancorp Investments for Auction Rate Securities Violations
• FINRA Files Complaint Against Morgan Keegan for Misleading Customers Regarding Risks of Bond Funds
• 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

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