OCIE Staff Summary Report on Issues Identified in Examinations of Certain Structured Products Sold to Retail Investors July 27, 2011 The Staff of the SEC's Office of Compliance Inspections and Examinations issued a summary report identifying various concerns relating to structured products marketed to retail investors. The report takes a generally critical view as to whether these products are suitable for retail investors and makes a number recommendations for broker-dealers marketing structured products, including: (i) adequate procedures and controls; (ii) requiring sales representatives to

Financial Services Authority August 5, 2011 The proposed guidance relates to Remuneration Code (SYSC 19A) in the FSA Handbook. The FSA's revised Remuneration Code came into force on 1 January 2011, implementing the rules on remuneration contained in the EU Capital Requirements Directive (CRD3). The proposed 'Dear CEO' letters set out the FSA's plans for monitoring implementation of the Code during the coming remuneration round. In an annex to the letter, the FSA also published proposed guidance for consultation on three policy issues. (i) Definition of 'Code staff' - how to identify staff

August 5, 2011 The FSA has published finalised guidance in relation to the following: template for self-assessment of compliance with Remuneration Code (for firms in proportionality Tier 2); the Remuneration Code - Code staff list for Tier two firms; template for self-assessment of compliance with Remuneration Code; the Remuneration Code - Code staff list for Tier three and four firms; retention periods; guaranteed variable remuneration; and frequently asked questions on the Remuneration Code. Cross References Template for self-assessment of compliance with Remuneration Code (for firms in

SEC Release No. 33-9251, 76 FR 49698 August 8, 2011 The SEC published a proposal to amend Securities Act Rule 146 to designate securities listed on BATS as "covered securities" under Securities Act Section 18. Securities designated as "covered" are exempt from state law registration requirements. Comments on the proposal are due by September 12, 2011. Please contact any of the following Cadwalader attorneys if you have any questions about this item: Alan Parness - [email protected]; Steven Lofchie [email protected]. Cross ReferencesSecurities Act § 18Securities Act Rule 146BATS

SEC Release No. 34-64969, 74 FR 23912 (SR-FINRA-2009-028) July 26, 2011 The SEC published for comment an amendment to a FINRA proposal to adopt new FINRA Rule 2231 (Customer Account Statements). The proposed rule is substantially similar to current NASD Rule 2340 and incorporates most of former NYSE Rule 409, each subject to certain significant changes. (Note: Former NASD Rule 2320 and NYSE Rule 409(f) were previously incorporated as FINRA Rule 2232.) The rule generally would require broker-dealers to send a monthly account statement to each customer whose account had activity since its last