FINRA issued a regulatory notice informing members of updated guidance on rules governing communications with the public. The update follows a retrospective rule review regarding their effectiveness and efficiency. The guidance comes in the form of additional questions and answers ("Q&Amp;A") on the Advertising Regulation page on FINRA's website. The following topics, among others, are addressed in the updated Q&Amp;A: principal approval; non-promotional communications; social media posts in online interactive electronic forums; filing exclusion for non-material changes to previously filed

The SEC announced that the Advisory Committee on Small and Emerging Companies will hold a public meeting on June 3, 2015. The Notice was published in the Federal Register. The meeting, which will be webcast on the SEC's Web site, will focus on matters relating to rules and regulations affecting small and emerging companies under the federal securities laws. See: 80 FR 29787.

The Senate Banking Committee on Banking, Housing and Urban Affairs voted in favor of the Financial Regulatory Improvement Act of 2015. The vote of 12 to 10 was split along partisan lines. The Act would implement a wide variety of financial regulatory reforms, and promote greater Congressional oversight of the Board of Governors of the Federal Reserve System. Se e: Senator Shelby's (R-LA) Statement; Senator Corker's (R-TN) Statement. Related news: Senator Richard Shelby Releases Draft of Financial Regulatory Reform Bill (with Lofchie Comment) (May 12, 2015).

The SEC announced fraud charges against an investment advisory firm and two of its executives for selling unsuitable investments to pension funds for police and firefighters, transit workers and other employees. The SEC alleged that Gray Financial Group, the firm's president and co-CEO breached their fiduciary duty by steering public pension fund clients to invest in an alternative investment fund despite their awareness that the investments did not comply with Georgia law. The SEC explained that although Georgia law allows most public pension funds in the state to purchase alternative

The Board of Governors of the Federal Reserve System ("FRB") released a proposal to add certain general obligation state and municipal bonds to the range of assets that qualify as high-quality liquid assets ("HQLA"). The proposed rule would treat investment-grade general obligation U.S. state and municipal bonds as HQLA up to certain levels if they met the same liquidity criteria that apply currently to corporate debt securities. The FRB stated that limits on the amount of a qualifying state or municipality's bonds are based on the specific liquidity characteristics of those bonds.