Topics:

New Rules, Proposed Rules and Guidance

• SEC Makes Short Sale Rule Permanent
• SEC Proposes New Rule to Curtail Adviser “Pay to Play” Practices
• SEC Proposes Amendments to Enhance Corporate Governance Disclosures
• SEC Approves NYSE Rule Amendments Eliminating Discretionary Voting in Uncontested Director Elections and Investment Advisory Contracts
• FINRA Proposes New Consolidated Rule on the Distribution and Sale of Investment Company Securities
• SEC Proposes Rule Amendments to Strengthen the Regulatory Framework for Money Market Funds
• FinCEN Issues Proposal to Define Mutual Funds as “Financial Institutions”
• SEC Proposes Amendments to Proxy Rules to Facilitate Rights of Shareholders to Nominate Directors
• SEC Proposes Amendments to Investment Adviser Custody Rule
• Implementation of Identity Theft Prevention Programs Further Delayed Until November 1, 2009

Proposed Litigation

• Legislation Proposed to Require Private Fund Advisers to Register with the SEC

Other News

• SEC Staff Issues No-Action Letter on TALF Loans for Registered Funds

Enforcement Actions

• FINRA Fines Merrill Lynch and UBS for Supervisory Failures in Sales of Closed-End Funds
• FINRA Fines Bank Broker-Dealers $1.65 Million for Supervisory Failures in Variable Annuity, Mutual Fund and UIT Transactions
• FINRA Fines Wachovia Securities $1.4 Million for Prospectus Delivery Failures
• SEC Charges Madoff Solicitors and Feeder Funds with Fraud
• SEC Settles Charges Against Evergreen Fund Adviser and Distributor over Alleged Mispricing of Mortgage-Backed Securities
• SEC Settles Charges Against Investment Adviser Representative for Aiding and Abetting Merrill Lynch’s Antifraud Violations
• SEC Settles Charges of Aiding and Abetting Adviser’s Fraud with Two Former BISYS Officials
• SEC Settles Enforcement Action Against NYLIM Relating to Disclosures to Fund Board During 15(c) Process
• FINRA Settles Auction Rate Securities Violations with Four Firms
• SEC Charges Operators of Reserve Primary Fund With Fraud