Sunshine Act Meeting Notice March 2, 2011 The SEC announced that it will hold an open meeting on March 2 to consider the following matters: (1) whether to propose regulations as to incentive-based compensation practices at certain financial institutions, as required by Section 956 of Dodd-Frank; (2) whether to propose rules for the operation and governance of clearing agencies, as required by Dodd-Frank; (3) whether to re-open the comment period for Regulation MC, relating to the mitigation of conflicts of interest at security-based swap clearing agencies, execution facilities, and national

Standard Investment Chartered Inc. v. NASD Feb. 11, 2011 In a per curiam opinion, the Second Circuit Court of Appeals held that SRO officers have absolute immunity from private damages suits relating to alleged misstatements in the proxy solicitation of members to amend its bylaws in connection with the merger of NYSE Regulation and the NASD to form FINRA. The court expanded the list of situations in which an SRO officer has absolute immunity from suit, and noted that amendments of an SRO's by-laws are "inextricable" from its role as a regulator.

SEC Press Release 2011-51 Feb. 24, 2011 The SEC announced the filing of civil enforcement action against a California-based broker-dealer and an operator of offshore hedge funds for their alleged manipulation of the prices of microcap stocks in order to artificially inflate the NAV of the hedge funds. The complaint alleges the firms used a number of manipulative techniques, including matched orders, marking the close, and wash sales. The complaint alleges violation of anti-fraud provisions under the Securities Act, the Exchange Act, and the Advisers Act. In addition, the SEC filed settled

Sacks v. SEC Feb. 22, 2011 In an opinion by Judge Sidney Thomas, the Ninth Circuit Court of Appeals found that a FINRA rule, which barred persons subject to a ban from the securities industry from representing parties in arbitration, was impermissibly applied retroactively to a person barred in 1991. The court highlighted cases on the retroactive application of laws and noted a "deeply rooted" presumption against retroactivity in making its decision. The case could be relevant to certain provisions of Dodd-Frank. In a recent speech, SEC Commissioner Kathleen Casey looked at a number of

MSRB Notice 2011-16 Feb. 22, 2011 The MSRB requested comment on proposed amendments to its Rule G-20 which would apply the rule to municipal advisors. Rule G-20 generally prohibits firms from attempting to induce others to engage in business by means of personal gifts or gratuities. The MSRB proposal would also make related changes to its recordkeeping rules. Cross References MSRB Rules G-8, G-9, G-20