The SEC sanctioned eight firms for violating auditor independence rules when they prepared the financial statements of brokerage firms that were their audit clients. An SEC investigation found that the firms took data generally from financial documents provided by clients during audits and used it to prepare their financial statements and notes to the financial statements. According to the SEC, under auditor independence rules, audit firms cannot jeopardize their objectivity and impartiality in the auditing process by providing such non-audit services to audit clients. By preparing the

Senate Banking Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) wrote a letter to SEC Chair Mary Jo White regarding the SEC's progress with respect to an equity market structure review. Senator Johnson and Senator Crapo referred to a July Senate Banking Committee hearing, titled "The Role of Regulation in Shaping Equity Market Structure and Electronic Trading," during which members stressed the importance of a holistic equity market structure review and questioned what the SEC is doing to help to build better markets for smaller companies. According to the Senators

In its letter to U.S. Trade Representative Michael Froman, SIFMA expressed its support for a comprehensive Transatlantic Trade and Investment Partnership ("TTIP") that addresses both market access and regulatory differences for all sectors. SIFMA explained that, together with the European Commission, it must explore the creation of a framework to enhance financial services regulatory coordination and consistency within TTIP in a way that does not undermine the reforms that have already occurred in the United States and Europe. Lofchie Comment: Discussions between the various governments and

The FINRA-proposed rule to incorporate NASD Rule 2430 ("Charges for Services Performed") into new FINRA Rule 2122("Charges for Services Performed") was published in the Federal Register. The proposed rule change provides that charges, if any, for services performed, including miscellaneous services, such as the collection of monies due for principal, dividends or interest, exchange or transfer of securities, and other services must be reasonable and not unfairly discriminatory among customers. The rule is effective immediately. Comments may be submitted until December 29, 2014. See: 79 FR

The American Bankruptcy Institute published its blue-ribbon commission report titled "2012-2014 Final Report and Recommendations of the Commission to Study the Reform of Chapter 11." According to the American Bankruptcy Institute, efforts to review and assess U.S. business reorganization laws are undertaken approximately every 40 years. The report provides a series of recommendations to revise Chapter 11 of the Bankruptcy Code to offer tools to "resolve a debtor's financial distress in a cost-effective and efficient manner." The report provided, among other things, recommendations regarding