Topics:

New Rules, Proposed Rules and Guidance

• Massachusetts Proposes Amendments to Information Security Program Regulations and Compliance Deadline
• 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"
• Implementation of Identity Theft Prevention Programs Further Delayed Until November 1, 2009

Proposed Legislation

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

Other News

• SEC Provides No-Action Relief Permitting Foreign Funds to Invest in U.S. Funds in Excess of 1940 Act Limitations
• SEC Issues No-Action Letter Related to Mixed and Shared Funding Orders
• SEC Staff Issues No-Action Letter on TALF Loans for Registered Funds

Enforcement Actions

• SEC Charges Adviser and Its CEO for Fraudulently Overstating Assets
• 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