The SEC has charged RBS Securities Inc. ("RBSI") with misleading investors in a 2007 subprime residential mortgage-backed security offering. According to the SEC, RBSI claimed that the loans backing the offering "generally" met the lender's underwriting guidelines; however, according to the SEC, many of the loans should have been excluded from the offering entirely. RBSI agreed to pay over $150 million in settling the matter. See: SEC Complaint against RBS; SEC Press Release.

The North American Securities Administrators Association ("NASAA") issued a "frequently asked questions" guide addressing the recently adopted SEC rules regarding the disqualification of "bad actors" from Regulation D offerings and the lifting of the ban on general solicitation and general advertising. Question 4 of the FAQ notes that issuers must be mindful of state notice filing requirements availing themselves of general solicitation and general advertising, and question 8 cautions fund managers relying on certain CPO exemptions that the CFTC still has not reconciled its rules for private

FINRA issued a regulatory notice regarding the SEC-approved amendments to treat over-the-counter ("OTC") options cleared by the Options Clearing Corporation ("OCC") as conventional options for purposes of FINRA Rule 2360 ("Options") and Rule 4210("Margin Requirements"). OCC-cleared OTC options will be considered conventional for purposes of position limit and reporting requirements and delivery of certain disclosure documents, and will be considered listed options for purposes of margin requirements including maintenance margin requirements and portfolio margin requirements. The effective date

MSRB opened registration for two webinars regarding regulatory oversight and the MSRB Electronic Municipal Market Access Website ("EMMA"). The MSRB will offer a series of webinars to provide municipal advisors with information on proposed municipal advisor rules and available resources. The webinars are intended to help give municipal advisors and other market participants the opportunity to engage with the MSRB, ask questions, and stay informed throughout the process of implementing a regulatory framework for municipal advisors. The following webinars are open for registration: Being

The SEC's Division of Investment Management has issued a no-action letter concerning Investment Advisers Act Rule 206(4)-2 ("Custody of Funds or Securities of Clients by Investment Advisers"). The "Custody Rule" indirectly requires that auditors who perform certain functions for SEC-regulated entities be subject to regular inspection by the Public Company Accounting Oversight Board ("PCAOB"). According to the SEC letter, however, the PCAOB has yet to adopt a permanent program for such inspections. Therefore, the SEC previously issued a no-action letter stating that the SEC would not take