Topics:

Litigation

• Funds Face Lawsuits Over Payments to Distributors; California Court Dismisses First Case

New Rules, Proposed Rules and Guidance

• SEC Adopts New Rule to Curtail Adviser “Pay to Play” Practices
• NFA Proposes Amendment to Restrict Exclusions from the Commodity Pool Operator Definition for Investment Companies
• SEC Proposes Amendments Regarding Target Date Fund Marketing Materials
• Implementation of Identity Theft Prevention Programs Further Delayed Until December 31, 2010

Legislation

• Senate Approves Restoring American Financial Stability Act of 2010

Other News

• Closed-End Fund Loses Battle to Omit Shareholder Proposal in Proxy Statement
• 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

Enforcement Actions

• Fund Portfolio Manager Charged with Tipping Family Members
• FINRA Fines HSBC Securities (USA) and US Bancorp Investments for Auction Rate Securities Violations
• FINRA Files Complaint Against Morgan Keegan for Misleading Customers Regarding Risks of Bond Funds

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