The U.S. Government Accountability Office ("GAO") issued a report examining how financial reforms have altered market expectations of the potential government rescue of a failing large bank. The report examines whether funding advantages remain for the largest bank holding companies due to an expectation that these banks would receive government support if they were ever to fail. "Too big to fail" is the notion that the federal government would intervene to prevent the failure of large, complex financial institutions to avoid destabilizing the broader economy. According to GAO, expectations

Senator Kirsten Gillibrand (D-NY) introduced a bill, titled "The Cyber Information Sharing Tax Credit Act," which is intended to address cyber security vulnerabilities and incentivize businesses of all sizes to join sector-specific information-sharing organizations that provide refundable tax credits for all costs associated with joining. According to Senator Gillibrand, "Businesses should take the same precautions to defend their data as they do with their buildings and inventory. Just as they purchase insurance and security systems, they should enter into agreements with information sharing

The SEC announced that the Division of Enforcement modified its Municipalities Continuing Disclosure Cooperation ("MCDC") Initiative. In order to allow issuers and obligors more time to complete their reporting requirements, the SEC extended the deadline to self-report potential violations by changing it from September 10, 2014 to December 2, 2014. The SEC noted that the September 10, 2014 deadline for underwriters remains unchanged. S ee: Press Release; MCDC Initiative; MCDC Questionnaire. Related news: SIFMA and Other Associations Submit Comments to SEC on Structure of MCDC (July 25, 2014).

The UK Financial Conduct Authority ("FCA") published a paper presenting the findings of its review of best execution and payment for order flow ("PFOF"). The review included 36 firms across five different business models: investment banks, contract-for-difference providers, wealth managers, brokers/interdealer brokers and retail banks. According to the FCA, the findings are relevant to all firms that execute, receive and transmit or place orders for execution, including investment managers. Additionally, the FCA stated, many of the conclusions will be of interest to investment managers even

FINRA published its Quarterly Disciplinary Review Podcast, which reviews specific FINRA rule violations by registered representatives. The podcast discusses cases highlighting the following specific conduct that led to disciplinary action: recommending unsuitable securities - specifically, a registered representative recommended short exchange-traded funds ("ETFs") to customers when he did not understand short ETFs well enough to form a "reasonable basis for recommending them"; failing to provide notice of outside business activities; making unauthorized trades in customers' accounts -