Financial Services Authority April 4, 2011 Previously, the Government set out plans to restructure the FSA. These plans involved: (i) a transfer of prudential supervision of banking and insurance to a subsidiary of the Bank of England, the Prudential Regulation Authority, and (ii) to rename the FSA the Financial Conduct Authority, which will focus on consumer protection and market regulation. Hector Sants, CEO of the FSA, has now provided an update on the FSA's transition to a new regulatory structure. The FSA has replaced its Supervision and Risk business units with a Prudential Business Unit

SEC Litigation Release LR-21917 April 6, 2011 The SEC announced the filing of a civil enforcement action against an attorney and a trader, relating to alleged insider trading on eleven M&A transactions involving clients of the law firm where the attorney worked. The complaint alleges that the two defendants were not directly related, but were linked through a middleman who facilitated the leaking of information. A parallel criminal proceeding was also filed by the U.S. Attorney for the District of New Jersey. Cross References SEC Press Release 2011-85 SEC Complaint Exchange Act Rule 10b-5

SEC Press Release 2011-84 April 5, 2011 The SEC announced that national securities exchanges and FINRA filed a proposal to establish a new "limit up-limit down" mechanism to address volatility in the U.S. equity markets. The proposal would establish a range (tied to recent prices for the relevant security) in which transactions in listed stocks would need to be executed. For stocks currently subject to the circuit breaker pilot, the range would be 5%. The range would be 10% for stocks not currently subject to the pilot. If approved, all trading centers (including ATSs and broker-dealer

European Commission March 31, 2011 The European Commission has published a chart detailing all planned Commission actions expected to be adopted from March 2011 until the end of December 2011.

AIS Financial Action, FINRA Disc. Proc. No. 2008012169101 April 4, 2011 A FINRA hearing panel expelled a CA-based broker-dealer for failing to implement and enforce an anti-money laundering program. The hearing panel found that the firm, on three occasions failed to identify, investigate and report suspicious penny stock activity. The panel also found that the firm permitted a customer account from a person who had a disciplinary history and criminal indictments for engaging in organized crime and money laundering prior to opening an account at the firm. Cross References FINRA New Release