The SEC charged a former investment bank analyst with insider trading. The analyst supplied confidential information to a close friend about clients involved in impending mergers and acquisitions of technology companies. The SEC Enforcement Division's Market Abuse Unit detected the insider trading through trading data analysis tools in its Analysis and Detection Center. Lofchie Comment: These guys were foolish not to realize that a massive volume of options trading in advance of a significant public announcement would trigger regulator's data detection tools. S ee: SEC Press Release.

The SEC proposed a new rule of practice that creates a process whereby a registered security-based swap dealer or major security-based swap participant ("SBS Entity") can apply for an order permitting an associated person who is subject to a statutory disqualification to effect or to be involved in effecting security-based swaps ("SBS"). Proposed Rule of Practice 194 was published in the Federal Register. Comments on the proposal are due by October 26, 2015. The proposed adoption of Rule of Practice 194 would, among other things: (1) provide a process through which a security-based swap dealer

The SEC requested comments on amendments to proposed Rule G-42 that would establish the core standards of conduct and duties applicable to municipal advisors. The amendments are intended to clarify the manner in which disclosure of conflicts is made, responsibilities for reviewing the recommendations of others, and the liability of an advisor with respect to improper billing practices. Comments must be submitted by September 11, 2015. See: 80 FR 51645 ("Notice of Filing of Amendment No. 1 to Proposed Rule Change Consisting of Proposed New Rule G-42"). Related news: SEC Requests Comments on

The SEC announced that it obtained an asset freeze against an issuer of an EB-5 program investment offering. The issuer is accused of defrauding Chinese investors who sought to attain U.S. residency by investing in his companies through the EB-5 Immigrant Investor Pilot Program. Lofchie Comment: Any firm that touches an EB-5 program should treat it as a high risk. A disproportionate number of fraud violations have occurred in connection with EB-5 programs and the regulators have signaled that they are paying close attention. S ee: Press Release.

FINRA proposed to adopt NASD Rule 3040 ("Private Securities Transactions of an Associated Person") as FINRA Rule 3280 in the consolidated FINRA Rulebook "without any substantive changes." "As with NASD Rule 3040, proposed FINRA Rule 3280 states that prior to participating in any private securities transaction, any person associated with a FINRA member must provide written notice to the member with which he or she is associated." FINRA proposed updating cross references to its rules. See: Text of Proposed FINRA Rule Change; Notice of Proposed FINRA Rule Change.