FINRA named Leslie F. Seidman as a new Public Governor. Ms. Seidman served previously as Chairman of the Financial Accounting Standards Board ("FASB"). See: FINRA Press Release.

The Board of Governors of FINRA issued a decision finding that Charles Schwab & Co., Inc. ("Schwab") violated FINRA rules by adding waiver language to customer account agreements prohibiting customers from participating in class actions. Specifically, the waiver provisions required customers to agree that any claims against Schwab be arbitrated solely on an individual basis, and that arbitrators had no authority to consolidate more than one party's claims. This decision reverses, in relevant part, a prior decision in favor of Schwab that would have allowed Schwab to enforce a contractual

The Board of Governors of FINRA approved amendments to FINRA's supervision rule that would expand the obligations of broker-dealers to check the background of individuals seeking to become associated persons of a firm to verify the accuracy and completeness of the information contained in an applicant's Form U4. Additionally, the amendments would also require firms to adopt written procedures in this area, which would include searching public records. In its press release, FINRA announced that it plans to perform a search of publicly available criminal records for all registered individuals

The CFTC Division of Clearing and Risk ("DCR") issued a no-action letter providing temporary relief to New York Portfolio Clearing ("NYPC"), in connection with the transfer and winding down of its business, which NYPC expects to complete in June 2014. The DCR will refrain from taking enforcement action against NYPC if it does not: obtain new acknowledgment letters from its depositories in the form prescribed by CFTC Rule 1.20(g)(4) ("Futures Customer Funds to Be Segregated and Separately Accounted for"); maintain liquid financial assets equal to at least six months' operating costs after April

The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") issued two no-action letters to the CPOs of commodity pools regarding annual report filing requirements. In Letter 14-56, the DSIO provided exemptions from CFTC Rule 4.7(b)(3) ("Exemption from Certain Part 4 Requirements for Commodity Pool Operators with Respect to Offerings to Qualified Eligible Persons and for Commodity Trading Advisors with Respect to Advising Qualified Eligible Persons") and CFTC Rule 4.22(d) ("Reporting to Pool Participants") which require that the CPO distribute and file a certified Annual Report within