March 4, 2011 The European Commission have sent a letter to the Chairman of the European Securities and Markets Authority (ESMA), noting that the AIFM Directive will most likely not enter into force before June 2011. As this is considerably later than initially expected and in view of the significant workload their request for technical advice represents for ESMA, the letter says that the Commission have decided to extend the deadline for the reception of ESMA's advice by two months to November 16, 2011.

SEC Release LR-21872 March 3, 2011 The SEC announced the filing of a civil enforcement action against a former UBS financial adviser for allegedly misappropriating $3.3 million dollars from a pooled investment fund that invested in life insurance policies. The complaint alleges that the financial adviser used customer funds as his own and induced additional customers to invest in the fund to pay back the funds he misappropriated. Cross References SEC PR 2011-60 SEC Complaint Exchange Act §§ 10(b), 15(a) Exchange Act Rule 10b-5

Financial Services Authority March 3, 2010 Welcome Financial Services Limited is insolvent and has proposed a scheme of arrangement to certain of its creditors as part of a restructuring proposal. In addition it is facing substantial potential liabilities arising out of alleged mis-selling of Payment Protection Insurance (" PPI") policies to its loan customers and it is unable or is likely to be unable to satisfy those liabilities. The firm has applied to vary its permission to carry on regulated activities (under Part IV of FSMA) and the FSA has granted the application. The firm's permission

SEC Release 34-64030 (Admin. Proc. 3-14285) March 3, 2011 The SEC announced a settled administrative action against a transfer agent and its former president for actions in which the individual allegedly misappropriated money from client accounts to personal brokerage accounts. Among other things, the action found that the firm failed to have in place adequate supervisory procedures and a system for applying such procedures. Cross References Exchange Act §§ 17A(d)(1), 17A(c)(3)-(4) Exchange Act Rule 17Ad-12(a)(2)

SIFMA Amicus Brief, in 11-0235-cv (2d Cir.) March 1, 2011 SIFMA submitted an amicus brief to the Second Circuit Court of Appeals in a case regarding what the term "customer" means for purposes of the FINRA arbitration code. In the lower court proceeding, the Southern District of New York held that the issuer of securities was a "customer" of the underwriter/broker-dealer, and thus a dispute between the parties could proceed to arbitration. SIFMA argues that the case presented a "counterparty" relationship, and that as a "sophisticated part[y]," the issuer did not fit into the term "customer"