AIS Financial Action, FINRA Disc. Proc. No. 2008012169101 April 4, 2011 A FINRA hearing panel expelled a CA-based broker-dealer for failing to implement and enforce an anti-money laundering program. The hearing panel found that the firm, on three occasions failed to identify, investigate and report suspicious penny stock activity. The panel also found that the firm permitted a customer account from a person who had a disciplinary history and criminal indictments for engaging in organized crime and money laundering prior to opening an account at the firm. Cross References FINRA New Release

Financial Services Authority April 4, 2011 Previously, the Government set out plans to restructure the FSA. These plans involved: (i) a transfer of prudential supervision of banking and insurance to a subsidiary of the Bank of England, the Prudential Regulation Authority, and (ii) to rename the FSA the Financial Conduct Authority, which will focus on consumer protection and market regulation. Hector Sants, CEO of the FSA, has now provided an update on the FSA's transition to a new regulatory structure. The FSA has replaced its Supervision and Risk business units with a Prudential Business Unit

SEC Litigation Release LR-21917 April 6, 2011 The SEC announced the filing of a civil enforcement action against an attorney and a trader, relating to alleged insider trading on eleven M&A transactions involving clients of the law firm where the attorney worked. The complaint alleges that the two defendants were not directly related, but were linked through a middleman who facilitated the leaking of information. A parallel criminal proceeding was also filed by the U.S. Attorney for the District of New Jersey. Cross References SEC Press Release 2011-85 SEC Complaint Exchange Act Rule 10b-5

Financial Services Authority April 2011 FSA Conduct Business Unit (CBU) The CBU has four divisions: (i) Supervision; (ii) Conduct Policy; (iii) Markets; and (iv) Authorisations. The CBU is responsible for the following: Delivering a forward-looking, judgment-focused approach to supervision and supporting the delivery of the supervisory regime through effective risk prioritisation, identification and mitigation. The Conduct Policy function for the FSA's Conduct of Business and Markets Infrastructure rules. The recognition and supervision of the exchanges, clearing houses and other market

European Parliament March 30, 2011 The European Parliament's Committee on Economic and Monetary Affairs has published Amendments 697 to 975 in relation to the Draft Report on the proposal for a regulation on OTC derivatives, central counterparties and trade repositories.