FINRA RN 11-23 May 6, 2011 FINRA announced that recent amendments to its rules governing motion practice in arbitration proceedings will become effective on June 6, 2011. The amendments provide a moving party with a five-day period to reply to a response to a motion. Cross References SEC Release No. 34-64225 (approving rule changes) FINRA Rules 12206, 12503, 12504, 13206, 13503, 13504

FINRA RN 11-22 May 6, 2011 FINRA announced that amendments to its rules regarding panel composition for promissory note disputes will become effective on June 6, 2011. The amendments make it so that FINRA will appoint chair-qualified public arbitrators to promissory note disputes rather than statutory discrimination qualified arbitrators. Cross References SEC Release No. 34-64226 (approving rule changes) FINRA Rules 12400(c), 13802, 13806

SEC Release No. 34-64456 The SEC published a request for comment, required by Dodd-Frank, regarding the feasibility of a system whereby a public or private utility or SRO would assign an NRSRO to determine credit ratings for certain structured financial products. Cross References SEC Press Release No. 2011-108 Dodd-Frank § 939F

SEC Release No. IA-3198 May 10, 2011 The SEC published a proposal to raise certain dollar thresholds that would need to be met before an investment adviser could charge clients performance fees. The amendments, which are required under Title IV of Dodd-Frank, would amend the client asset requirements in IAA Rule 205-3 to $1 million for assets under management and $2 million net worth (from $750,000, and $1.5 million, respectively). The proposal would also, among other things, provide a method for calculating future inflation adjustments to the dollar amounts. Cross References SEC Press Release

SEC Release No. 34-64442 / IA-3197 May 9, 2011 The SEC announced a settled civil administrative action against a California-based investment adviser and two of its principals for violations that included (i) failing to disclose certain requested information regarding prior SEC examinations; (ii) failing to implement appropriate policies and procedures; (iii) failing to have an annual surprise examination of the adviser's hedge funds and to provide the hedge fund investors with quarterly account statements and timely annual audit reports; and (iv) failing to keep employee acknowledgments of