July 1, 2011 The UCITS IV Directive Instrument 2011, which became operative on July 1, 2011, is now available on the website of the Financial Services Authority. The entry into force of this document transposes parts of the UCITS IV Directive into UK law, and amongst other areas, will affect the conditions of authorisation of management companies, the obligations of the depositary, and the obligations of investment companies. A policy statement on the UK implementation of UCITS IV from the Financial Services Authority is expected in due course. Cross References FSA Issues Near-Final Draft of

HM Treasury July 5, 2011 On July 5, 2011, HM Treasury published a consolidated version of FSMA Act 2000 and the draft Financial Services Bill which illustrates how proposals for the reform of the UK financial services sector will be incorporated into existing legislation. The draft Bill sets out the provisions that will implement the government's structural financial services reforms. These include the measures necessary to establish the new regulatory bodies: the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority. The government has announced

SEC Release No. 34-64795 July 1, 2011 The SEC issued an order granting temporary relief from compliance with certain provisions of the Exchange Act in connection with the pending amendments to the definition of "security" to encompass security-based swaps. The SEC stated that the intent of the exemption is to maintain the "status quo" (to the extent that is possible) during implementation of Dodd-Frank. See also CWT Clients Friends Memo, Two Dodd-Frank Problems: the Effective Date and the Definitions (June 13, 2011). Please contact any of the following Cadwalader attorneys if you have any

SEC Release No. 34-64748 June 27, 2011 The SEC announced that it is extending the compliance date for certain requirements of recently adopted Exchange Act Rule 15c3-5. In particular, the SEC extended, until November 30, 2011, all of the requirements of Rule 15c3-5 for fixed income securities, and the requirements of Rule 15c3-5(c)(1)(i) (requiring risk management controls to prevent entry of orders that exceed certain credit or capital thresholds) for all securities. The remainder of Rule 15c3-5, which requires broker-dealers with direct access to specified securities trading facilities to

SEC Release No. 33-9228/34-64767/IA-3227 June 29, 2011 The SEC announced a settled administrative action against a broker-dealer that allegedly made inaccurate statements when selling auction rate securities to customers. In settling the proceeding, the broker-dealer agreed to, among other things, provide its customers the opportunity to sell back to the firm any auction rate securities purchased prior to the collapse of the ARS market in February 2008. The settlement follows in a long list of similar ARS-related actions brought by the SEC and FINRA in recent years. Cross References SEC Press