The SEC sanctioned a Nebraska-based investment advisory firm and its owner for failing to seek the most beneficial terms reasonably available when investing in mutual fund shares for three funds that the company managed. The SEC found that Manarin Investment Counsel, Ltd. and Ronald R. Manarin violated "best execution" by consistently selecting higher cost mutual fund shares for the three fund clients, even though cheaper shares in the same mutual funds were available. The advisers' motivation was to earn higher 12b-1 fees through an affiliated broker-dealer. See: SEC Order; SEC Press Release.

IOSCO published a final report on the implementation of Principles 6 and 7 of the IOSCO Objectives and Principles of Securities Regulation. The Principles address particular concerns regarding risks posed to securities markets and the need for securities regulators to play a role in addressing systemic risks and maintaining financial stability. The key findings of the report include: that 31 jurisdictions participating in the review made significant efforts to implement Principles 6 and 7; that further work is needed to develop processes to manage and mitigate systemic risks; and that many

The House Committee on Agriculture held a public hearing on the CFTC's proposed customer protections rule. According to the Delta Strategy Group summary (which is linked below), much of the discussion focused on the impact of two CFTC rule proposals: (1) the requirement that, at all times, an FCM must maintain residual interest of their own collateral in segregated accounts so that one futures customer's funds are not used to margin or secure the positions of another futures customer and (2) the change in time allowed for margin calls to be met by customers before the FCM must take a capital

MSRB will host three educational and outreach events intended to provide opportunities for municipal market professionals to learn about new MSRB initiatives. The first of the events will be in Livonia, Michigan, on December 5, 2013. Other events will be held in Atlanta, Georgia, on January 28, 2014, and Chicago, Illinois, on July 29, 2014. See: MSRB Press Release; Michigan Seminar Agenda.

FINRA filed with the SEC a proposed rule change amending FINRA Rule 7730 ("Trade Reporting and Compliance Engine"). The proposed rule change would: provide for Trade Reporting and Compliance Engine ("TRACE") data fees for real-time and historic data sets of transactions in TRACE-Eligible Securities that are effected pursuant to Securities Act Rule 144A ("Private Resales of Securities to Institutions") clarify Level II Full Service Web Browser fee rates in light of the availability of additional data sets; and make other technical amendments. See: Text of Proposed Rule Change.