The Honorable Laura Swain, U.S. District Court for the Southern District of New York, entered a default judgment against Peter Madoff, former CCO and senior managing director at Bernard L. Madoff Investment Securities ("BMIS"). The complaint alleged that Mr. Madoff created stacks of compliance documents setting out "robust" policies and procedures over BMIS's investment advisory operations. The SEC found that none of the policies or procedures were implemented, and that no reviews of compliance were performed, although Mr. Madoff represented that he personally had completed the reviews. The

FINRA filed revisions with the SEC to amend the content outline and selection specifications for the Investment Company and Variable Contracts Products Representative ("Series 6") examination. The proposed revisions update the material to reflect changes to the laws, rules and regulations covered by the examination and to incorporate the functions and associated tasks currently performed by an Investment Company and Variable Contracts Products Representative. See: Text of Proposed Rule Change; FINRA Press Release.

The Public Investors Arbitration Bar Association released a study asserting that FINRA's arbitrators were too willing to permit the expungement of complaints against a firm or representative in connection with the settlement of a customer's claims. Following the PIBA study, FINRA released a statement that was generally supportive of PIABA's concerns. FINRA noted that it has recently provided expanded guidance to assist arbitrators in the proper performance of their responsibilities with expungement and to enhance arbitrator training. FINRA stated that it is reviewing rules and interpretations

The CFTC issued an Order and settled charges against JPMorgan Chase regarding the employment of a "manipulative device" in connection with JPM's trading of certain credit default swaps ("CDS"). The CFTC alleges that, when JPM sold a "staggering volume" of these swaps in a concentrated period, JPM, acting through its traders, recklessly disregarded prices that are established on "legitimate forces of supply and demand." According to the Order, JPMorgan violated CEA Section 6(c)(1) ("Enforcement Powers of the Commission") and CFTC Rule 180.1 ("Prohibition on the Employment, or Attempted

SEC Chair Mary Jo White spoke at the National Association of Corporate Directors Leadership Conference, focusing on the importance of disclosure and the need to update the disclosure system to better fit today's securities markets. According to Chair White, the core purpose of disclosure is to provide investors with the information they need to make informed investment and voting decisions. Chair White discussed information that companies are required to disclose, such as how their businesses are operated, how much money they've made over the past few years, and specific details about large