The MSRB filed a rule proposal with the SEC concerning the core duties of care and loyalty owed to state and local governments and other clients by municipal advisors. The MSRB proposed the creation of a new MSRB Rule G-42 which would, among other things, establish core standards of conduct for municipal advisors, provide guidance on the obligations and prohibitions that accompany their federal fiduciary duty to state and local governments, and clarify their duties of care and fair dealing to all clients. Key provisions of the rule, as outlined by the MSRB, address the following: the fiduciary

The CFTC fined Hope Advisors LLC ("HAL") for acting as a CPO without registering with the CFTC and for failing to show all of the CFTC-required information in monthly statements provided to pool participants. The CFTC Order ("Order") found that HAL operated Hope Investments LLC ("HIL") as a commodity pool without registering with the CFTC as a CPO. Additionally, the CFTC found that HAL violated CFTC Rule 4.22(d), which requires that commodity pool statements report both realized and unrealized gains and losses, by providing monthly reporting statements to HIL participants that showed only

NASAA and the SEC held their annual NASAA/Section 19(d) Conference. Section 19(d) of the Securities Act authorizes and directs the SEC to coordinate and cooperate with state securities regulators. Investor Advocate Rick Fleming and SEC Commissioner Luis Aguilar discussed enhanced communication and collaboration between federal and state securities regulators. Mr. Fleming advocated for "smart regulation," noting that it "provides a sufficient level of protection to bolster confidence without needlessly burdening the regulated entities" and can "spur innovation." Creating smart regulation, Mr

SIFMA held its Annual Operations Conference and Exhibit, where SIFMA Vice President Randy Snook, SEC Commissioner Kara Stein, Office of Financial Research ("OFR") Director Richard Berner and other regulators discussed data standards, cybersecurity and various technology initiatives. In his opening remarks, Mr. Snook contextualized the discussions by describing the evolution of the role of the operations professional. He described many changes in the financial services industry, and that a shift to a T+2 settlement cycle and an industry-wide prioritization of cybersecurity are on the horizon

The Office of the Comptroller of the Currency ("OCC") issued a revised booklet titled "Real Estate Settlement Procedures Act." The booklet is part of the Comptroller's Handbook. The booklet, which replaces a similarly titled booklet that was issued in October 2011, provides updated information that reflects recent changes made to Regulation X regarding mortgage servicing and loss mitigation. See: Real Estate Settlement Procedures Act.