The Second Circuit issued a significant decision as to a broker-dealer's disclosure obligations to its customers under Rule 10b-16 in connection with the broker-dealer's handling of a customer's margin account. As further discussed, the decision should (i) cause broker-dealers to review their Rule 10b-16 disclosures and (ii) remind customers that have margin accounts that, in the absence of a "lock-up" agreement, a margin loan is a demand loan that is subject to a demand for repayment at any time. The case was brought by two hedge funds and their adviser (collectively, the "Funds") against UBS

The U.S. Senate approved the nomination of Mary Jo White to be the 31st Chairman of SEC by unanimous consent. White was confirmed to serve the remainder of former SEC Chairman Mary Schapiro’s term, which expires on June 5, 2014. White will replace current designated Chairman Elisse Walter when she leaves the SEC or steps down as Chairman. View Press Release in full here (links externally to Senate website).

The CFTC is proposing to amend its regulations ("Proposal") to clarify certain responsibilities of a swap dealer ("SD") or major swap participant ("MSP") regarding its employees who solicit, accept or effect swaps in a clerical or ministerial capacity. Due Date: Comments must be received on or before June 7, 2013. See: 78 FR 20848 (links externally to CFTC website).

In an amended complaint, the SEC charged a former employee at a California-based medical device manufacturer with illegally leaking confidential financial data to her brother, who illegally traded in the company's stock and enabled his hedge fund clients to do the same. See: Amended Complaint. See also: Press Release; Original Complaint.

The IRS issued a draft of Form 8957, a new form that will be used by foreign financial institutions and other financial entities to register with the IRS under FATCA. The IRS emphasized that the draft Form should not be used currently by foreign financial institutions to attempt to register under FATCA, and that an electronic online registration procedure would be launched in July 2013 where financial institutions and entities can most efficiently and effectively register for FATCA. Institutions registering on line will receive a prompt online notice of registration acceptance and a Global