The October issue of the NFA's Investor Bulletin covers the following items (links jump directly into the relevant section of the bulletin): FCM Financial Data Financial Literacy Report Money Smart Week BrokerCheck Whistleblower Program FIA Expo Traders Expo Recent Enforcement Actions Click here to view bulletin in full (links externally to NFA website).

In a speech before the PLI Seminar on Broker-Dealer Regulation and Enforcement 2012, FINRA's Executive Vice President and head of Member Regulation Sales Practice, Susan Axelrod, discussed several product-specific concerns, sales practice issues, and supervisory issues in high-frequency trading. Cyber security was a particular focus of the talk. Broadly speaking, Axelrod addressed the following issues: The regulatory environment and challenges; Changes in FINRA's examination program; The SEC's adoption of Rule 613 and the need for a consolidated audit trail; Issues in cyber security; The

NASAA reported a significant increase in enforcement actions against investment adviser firms last year, with the number of IA enforcement actions nearly doubling to 399 in 2011. Notably, actions against investment adviser firms accounted for 15 percent of all enforcement actions handled by state securities regulators, and Regulation D-Rule 506 private offerings and real estate investment schemes were the most reported products at the basis of enforcement actions for the second consecutive year. Parness Comment: NASAA's latest Enforcement Report reflects an admirable job by the state

On Tuesday, October 30, 2012, the CFTC's Technology Advisory Committee will hold a public meeting at the Hilton Chicago from 9:00 a.m. to 5:00 p.m. The meeting will focus on the following three issues: (1) Automated and high-frequency trading (HFT); (2) Implementation of an automated technological solution to protect customer funds; and (3) Implementation of CFTC Rules 1.73 (Clearing futures commission merchant risk management) and 1.74 (Futures commission merchant acceptance for clearing); technological challenges and possible Commission waivers. Click here to learn more (links externally to

SEC Commissioner Daniel M. Gallagher delivered the keynote address at the National Society of Compliance Professionals National Meeting. The first part of the speech discussed the separate histories of the U.S. regulation of broker-dealers and that of investment advisers. At the conclusion of this section of his talk, he said that Dodd-Frank required the SEC to consider harmonizing the broker-dealer and investment adviser regulatory regime (especially with regard to fiduciary obligations), but it did not mandate such harmonization. Rather, the SEC would have to consider what, if any, rule