FINRA RN 11-10 March 4, 2011 FINRA issued a regulatory notice to remind firms of their obligation to electronically report specified events and quarterly customer complaint information required under NASD Rule 3070 and NYSE Rule 351, as well as under FINRA Rule 4530 (which becomes effective on July 1, 2011). In addition, the notice provides new guidance on reporting under 4530 for matters that become subject to reporting after July 1, 2011. Cross References FINRA Rule 4530 NASD Rule 3070 NYSE Rule 351

SEC Release 34-64030 (Admin. Proc. 3-14285) March 3, 2011 The SEC announced a settled administrative action against a transfer agent and its former president for actions in which the individual allegedly misappropriated money from client accounts to personal brokerage accounts. Among other things, the action found that the firm failed to have in place adequate supervisory procedures and a system for applying such procedures. Cross References Exchange Act §§ 17A(d)(1), 17A(c)(3)-(4) Exchange Act Rule 17Ad-12(a)(2)

SEC Release LR-21872 March 3, 2011 The SEC announced the filing of a civil enforcement action against a former UBS financial adviser for allegedly misappropriating $3.3 million dollars from a pooled investment fund that invested in life insurance policies. The complaint alleges that the financial adviser used customer funds as his own and induced additional customers to invest in the fund to pay back the funds he misappropriated. Cross References SEC PR 2011-60 SEC Complaint Exchange Act §§ 10(b), 15(a) Exchange Act Rule 10b-5

CFTC Testimony March 3, 2011 CFTC Chairman Gensler testified regarding implementation of Dodd-Frank: "At this point in the process, the CFTC has come to a natural pause as we have now promulgated proposals in most of the areas. As we receive comments from the public, we are looking at the whole mosaic of rules and how they interrelate. We will begin considering final rules only after staff can analyze, summarize and consider comments, after the Commissioners are able to discuss the comments and provide feedback to staff, and after the Commission consults with fellow regulators on the rules

SEC Release 34-63999 (SR-FINRA-2010-061) March 1, 2011 The SEC granted approval to a FINRA proposal to adopt new FINRA rules governing guarantees, carrying agreements, security counts, and supervision of general ledger accounts. The new rules are based primarily upon NASD Rule 3230 and NYSE Rules 322, 382, 440.10 and 440.20. Cross References SEC Release 34-63375 (proposal) FINRA Rules 4150, 4311, 4522, 4523 NASD Rule 3230 NYSE Rules 322, 382, 440.10, 440.20, 382/01-05, 409(a)/01, 440.20/01